Bitcoin hits 3-week high as trader says ‘all signs there’ to short BTC

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 hits 3-week high as trader says 'all signs there' to short BTC

Bitcoin (BTC) kept grinding higher at the Sept. 12 Wall Street open as traders called for an imminent correction.

Bitcoin hits 3-week high as trader says 'all signs there' to short BTC

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

$23,000 proves essential to flip

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $22,481 on Bitstamp, its highest since Aug. 19.

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.

Bitcoin hits 3-week high as trader says 'all signs there' to short BTC

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.

Bitcoin hits 3-week high as trader says 'all signs there' to short BTC

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.

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.

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