Bitcoin squeezes past $20K on US dollar dip as BTC price gains 8.7%

Bitcoin squeezes past $20K on US dollar dip as BTC price gains 8.7%

A comedown for U.S. dollar strength provides the fuel for a short squeeze in Bitcoin liquidating over $60 million of shorts.

Bitcoin squeezes past $20K on US dollar dip as BTC price gains 8.7%

Bitcoin (BTC) bounced past $20,000 on Sep. 9 as a much-anticipated “short squeeze” took hold.

Bitcoin squeezes past $20K on US dollar dip as BTC price gains 8.7%

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

Trader: BTC could go to $25,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD adding as much as $2,700 (8.7%) in hours on the day, reaching its highest since Aug. 26.

After weeks of ranging punctuated with successive moves to the downside, Bitcoin thus finally gave bulls what they wanted.

For popular trading Twitter account Il Capo of Crypto, the upside still had potential to continue at the time of writing, with BTC price action eyeing $21,000.

“Bears very weak here, imo it keeps going up soon,” he forecast.

Il Capo of Crypto had long predicted a relief bounce taking Bitcoin to around $23,000 before resumption of the downside trend.

“Crucial for Bitcoin is to flip the $20K area,” Michaël van de Poppe, CEO and founder of trading firm Eight, agreed.

Analysts had often argued that the fate of crypto markets rests with moves in DXY, which remain unpredictable as the Federal Reserve prepares a fresh rate hike next week.

“Bitcoin inverted chart resembles DXY back in 2021,” trader Hamza noted.

U.S. dollar index (DXY) 1-day 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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