Optimism increases over a macro Bitcoin bottom as daily gains top 9% for BTC/USD on the Wall Street open.
Bitcoin (BTC) circled $21,000 at the Sep. 9 Wall Street open as newly-won gains endured. Meanwhile, the total cryptocurrency market capitalization has crossed back above the $1 billion mark.
BTC/USD 1-day candle chart (Bitstamp). Source: TradingView
BTC price gives “confirmation” of trend change
After a brief consolidation, the pair set new multi-week highs of $21,254 on Bitstamp, and now faced resistance in the form of an old support level abandoned in late August.
For market commentators, however, the latest move had already proved decisive — and should favor bulls beyond short timeframes.
“This impulse up is THE confirmation,” popular Twitter trader and angel investor Revolt argued in a thread, reiterating suspicion that a market reversal was long overdue.
“Many metrics have been screaming bottom is in for weeks now. Since mid-June, I’ve been saying the bottom is most likely in and I’m going from 80% to 95% probability on that.”
Revolt highlighted various on-chain and price chart-based bull signals, among them the end of capitulation for Bitcoin miners witnessed last month.
While acknowledging that he could “definitely be wrong” on the outcome, he nonetheless put faith in a longer-term trend change now entering.
“In this case a HTF bottom that presents a (very) compelling risk/reward,” the thread concluded.
“I kept holding on to my longs from 20K, it hurt a little when underwater but now getting more comfy these will generate a serious return the coming months.”
Trader and analyst Rekt Capital, meanwhile, called for caution when assuming that Bitcoin had definitively changed tact.
Pointing to the weekly chart, he argued that traders should avoid the urge to compare the current reversal to a similar event in 2018, as at this point, no macro bottom was guaranteed.
— Rekt Capital (@rektcapital) September 9, 2022
Analyst: Time to be risk-on “for a while at least”
In the face of a consolidating U.S. dollar, meanwhile, Wall Street opened with fresh gains in a further boost for risk assets.
The S&P 500 and Nasdaq Composite Index added 0.9% and 1.3%, respectively, within the first hour’s trading.
U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
At the same time, the U.S. dollar index (DXY) enjoyed a modest bounce from local lows, targeting 109 at the time of writing.
For Bitcoin analysts, however, there was reason to believe that the greenback’s halcyon days would soon be over.
DXY has been rejected by the parabola, while forming double RSI bearish divergence.
Say you final goodbyes. The time for the dollar is close to an end. pic.twitter.com/NZ46cgvmaN
— Game of Trades (@GameofTrades_) September 9, 2022
“Looks like a USD weekly cycle top (finally) and cycle lows for stocks, gold, bitcoin. Risk on for a little while, at least,” trader, entrepreneur and investor Bob Loukas added.
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