Bitcoin reaches ‘short squeeze’ trigger zone as BTC price nears $20.4K

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Bitcoin (BTC) regained some misplaced floor on the Aug. 29 Wall Road open amid speak of an imminent quick squeeze.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Shorts lose out in modest squeeze increased for BTC

Knowledge from Cointelegraph Markets Pro and TradingView confirmed BTC/USD climbing to close $20,400 on Bitstamp as United States equities started buying and selling.

The transfer signaled welcome reduction for hodlers, who had regarded on because the pair dove increasingly below $20,000 throughout the weekend.

Now, with the market “aggressively quick positioned,” situations appeared to favor an extra reduction bounce to burn these nursing quick trades.

“You already know what’s subsequent,” standard Twitter account Il Capo of Crypto warned, reinforcing his perception that the bounce can be adopted by a deeper retracement.

Knowledge from on-chain monitoring useful resource Coinglass in the meantime confirmed liquidations starting to mount on the time of writing, with mixed cross-crypto liquidations at $166 million in 24 hours.

U.S. shares themselves opened barely within the crimson, whereas the U.S. greenback index (DXY), having earlier put in a brand new twenty-year excessive, started retargeting its peak after a previous retracement.

“$DXY may very well be nearing its macro high related means Bitcoin has in April 2021,” dealer JACKIS summarized.

“Many bearish divergences seen on the Each day chart is defo one thing to control. The second DXY tops is the second main belongings print the macro backside.”

U.S. greenback index (DXY) 1-hour candle chart. Supply: TradingView

“Exhausting to get too excited”

Zooming out, the temper amongst analysts remained lackluster within the face of ongoing macro turmoil.

Associated: US dollar hits new 20-year high — 5 things to know in Bitcoin this week

After final week’s Federal Reserve feedback eliminated any hope of a coverage pivot, shares had little impetus for optimism as quantitative tightening, referred to as QT, regarded set to proceed.

“It is laborious to get too enthusiastic about $BTC and main pump pumps when the SPX appears to be like like this,” dealer and analyst Josh Rager concluded on the day.

“There are going to be outlier belongings that outperform and nonetheless pump on this bearish surroundings. However total, exterior of these tokens it is laborious to need to go heavy with equities downtrend.”

ALtcoins in the meantime provided blended progress as Bitcoin gained, with Ether (ETH) main the highest ten cryptocurrencies by market cap.

ETH/USD traded up round 6% on the day on the time of writing, passing $1,500.

ETH/USD 1-hour candle chart (Binance). Supply: TradingView

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you need to conduct your personal analysis when making a call.