Bitcoin squeeze to $23K still open as crypto market cap holds key support
Bitcoin (BTC) returned to $20,000 on Sep. 2 amid renewed bets on a “short squeeze” higher.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD recovering from another dip below the $20,000 mark on the day, continuing rangebound behavior.
The pair gave little insight into which direction the next breakout could be, with opinions differing on the surrounding environment.
Amid downside pressure on risk assets and a strong U.S. dollar, overall consensus appeared to favor long-term weakness continuing.
For popular trader Il Capo of Crypto, however, there was still reason to believe that a relief bounce could enter first. Thanks to the majority of the market expecting immediate losses to continue, a “squeeze” of short positions could hit, pushing spot price out of its multi-day trading range to target as much as $23,000.
“Main bearish TL broken. Bullish confirmation for the short squeeze would be a break of the 20700-20800 resistance. After this, we should see 22500-23000,” he told Twitter followers on the day.
Bitcoin circled $20,100 at the time of writing, still requiring effort to enter the launch zone for the short squeeze.
On the dollar, other crypto sources argued that the status quo was not yet showing signs of fundamental change. The U.S. dollar index (DXY) hit fresh twenty-year highs on Sep. 1.
People keep tryna call the $DXY top and the #BTC bottom without any reason for itI think it's gonna be pretty clear when it happensFor now we're just getting continuation up on the $DXY and #BTC is sustaining low levelsThere's no reason to believe a trend shift is happening
“This will end in capitulation of the the global markets and a blow off top of the US Dollar at some point,” analyst Matthew Hyland added.
DXY was
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