Bitcoin hits 3-week high as trader says 'all signs there' to short BTC
Little faith remains in continued upside for BTC price action after a week of solid gains brings back the 100-day moving average.
Bitcoin (BTC) kept grinding higher at the Sep. 12 Wall Street open as traders called for an imminent correction.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
$23,000 proves essential to flip
The pair had preserved existing gains over the weekend, with a declining U.S. dollar providing a catalyst for risk assets as the week began.
The S&P 500 and Nasdaq Composite Index both traded up 1.1% after the first two hours’ trading. By contrast, the U.S. dollar index (DXY) was down 0.7% on the day.
U.S. dollar index (DXY) 1-day candle chart. Source: TradingView
Analyzing the situation, popular trader Crypto Ed said that the time had now come to eye a corrective move on BTC/USD.
“I would say that all signs are there for some shorts,” he told viewers in his latest YouTube update.
Upside potential was likely limited to $23,000, he suggested, while to the downside, $20,800 was an area of interest.
A CME Bitcoin futures gap left over from the Sep. 10 close meanwhile added the area around $21,400 as a possible retracement target.
“I only would be looking for longs if we break $23,000, then for a move towards $28-29,000,” Crypto Ed added.
CME Bitcoin futures 1-hour candle chart with gap highlighted. Source: TradingView
Equally expecting a trend change was Il Capo of Crypto, who on the day reinforced a conviction that the current price strength was simply a relief rally within an overall bear market.
“Most people getting bullish now. Remember that this is a short squeeze, a bounce that happens during a bear market to continue the downtrend afterwards,” he tweeted.
“I still expect a little bit higher (22500-23000), but soon I will turn full bearish again.”
Having sealed a weekly close above its realized price, BTC/USD now looked primed to see a daily candle close above the 100-day moving average (MA) for the first time since April.
BTC/USD 1-day candle chart (Bitstamp) with 100-day MA. Source: TradingView
Ethereum struggles on Merge countdown
Less inspiring, meanwhile, was price action on Ethereum (ETH), which lost ground on the day despite ongoing hype around the Merge.
ETH/BTC 1-day candle chart (Binance). Source: TradingView
ETH/USD was down 2.2% at the time of writing, while ETH/BTC caught the attention of some market participants.
Update: Rejection off the 0.085 level for ETH/BTC.
— Joe Consorti ⚡ (@JoeConsorti) September 11, 2022
Bitcoin’s share of the overall cryptocurrency market cap thus saw a stiff rebound on the day after hitting just 38.9%, its lowest since January.
Bitcoin market cap dominance 1-week candle chart. Source: TradingView
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.