Knowing the Last Crash, Analyst Shared Bitcoin’s Next Level!

Bitcoin price hit a 10-week low amid the ‘painful’ US dollar rally. An analyst concludes that the dollar is overdue for a correction that will blow up risk assets, including crypto. The analyst, who knows about the recent collapse, talks about a relief rally of $ 23 thousand for the leading crypto.

“Aid bounce of $23,000 for Bitcoin still likely”

According to TradingView data, on September 6, BTC suffered sudden losses. Overnight lows hit $18,540 on Bitstamp. Bitcoin has hit its lowest levels since June 30, taking liquidity from the July bottom and recovering only marginally during the day.

BTC 1-day candlestick chart (Bitstamp) / Source: TradingView

The downside price action came after almost a week of sideways movements. Also, volatility was nowhere to be seen as market participants grit their teeth in hopes of an upside exit. They were disappointed in the event. But there is still reason for a surge of relief for popular analyst Crypto of Capo. Check out this article of Kriptokoin.com for the analyst’s accurate predictions.

“First of all, the price is currently sitting above the major daily support,” the analyst said in a Twitter thread. The low range is $18,500-19,000,” he argues. Based on this, the analyst makes the following statement:

This is where the last bear market rally began. It shows strong demand here. A jump from here to the supply zone (22,500–23,000) would make for an excellent H&S.

The popular analyst says that every crash is accompanied by a decrease in volume. He then suggests that sellers have to work harder and harder upstream to keep prices down. Crypto of Capo adds, “Financing also shows that shorts get tight on each leg and there’s a lot of fuel for a ‘short squeeze’.” For that not to happen, consolidation would need to start below $18,500 in late June. Crypto of Capo makes the following statement:

In summary, a short squeeze to 22,500-23,000 is still possible. Most people are condescending and arrogant. But the charts show otherwise. Don’t be too confident in your short positions. I’m still mostly on USDT. However, I am hedging for this potential move. Time will show us.

Data from on-chain tracking resource Material Indicators confirms that Bitcoin is moving in a large liquidity area.

Binance order book chart / Source: Material Indicators / Twitter

“DXY has 120 on target after ‘major fix’”

Meanwhile, macro markets provided an interesting outlook on the day as the US dollar rose. As you follow on Kriptokoin.com, DXY has set the new highs of the twenty years with 110.78. This was accompanied by a deeper dive on the euro and yen. It continued a harsh trend from the last months.

US dollar index (DXY) 1-day candlestick chart / Source: TradingView

For macro economist Henrik Zeberg, a brief retreat should not have been celebrated. Because the dollar would later return to 120 in vengeance, a level that was last reached in January 2002. However, he predicted that the correction would mean that the crypto would “fly”.