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 Sept. 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 Sept. 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 $28,000–$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 Ethere (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
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