Bitcoin price hits 10-week low amid ‘painful’ US dollar rally warning

Bitcoin price hits 10-week low amid 'painful' US dollar rally warning

The dollar is overdue for a correction, which will briefly send risk assets, including crypto, "flying," one analyst concludes.

Bitcoin price hits 10-week low amid 'painful' US dollar rally warning

Bitcoin (BTC) provided a long awaited breakout into Sept. 7 as BTC price action dashed bulls’ hopes of a recovery.

Bitcoin price hits 10-week low amid 'painful' US dollar rally warning

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

$23,000 relief bounce “still likely” says trader

Data from Cointelegraph Markets Pro and TradingView captured snap losses for BTC/USD later on Sept. 6, with overnight lows coming in at $18,540 on Bitstamp.

The pair put in its lowest levels since June 30, taking liquidity from the July floor and only marginally recovering on the day.

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

Downside price action followed almost a week of sideways movements and volatility was nowhere to be seen as market participants gritted their teeth hoping for an exit to the upside.

In the event, they were left disappointed, but for popular trader Il Capo of Crypto, there was still reason to believe that a relief bounce would occur.

“First of all, price is right now sitting above major daily support (range low, 18,500–19,000),” he argued in a Twitter thread.

By contrast, WTI crude oil hit its lowest levels since the start of the year in what popular trading account Blockchain Backers called the start of “the capitulation of oil.”

U.S. equities opened modestly higher, with the S&P 500 and Nasdaq Composite Index gaining 0.3% and 0.65% in the first hour’s trading, respectively.

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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