Bitcoin (BTC) experienced a surge in price on September 18, reaching new month-to-date highs and breaking the $27,000 barrier for the first time in September. This bullish start to Wall Street trading brought about optimism among Bitcoin bulls.
Michaël van de Poppe, founder and CEO of trading firm Eight, observed the upward trend and the awakening of altcoins. He highlighted that now is a favorable time to invest in assets. Van de Poppe shared an analytics chart on X (formerly Twitter), indicating the area of resistance that needs to be overcome for further gains.
Material Indicators, a monitoring resource, also detected positive signs in the market with its proprietary trading instruments. They reported daily buy signals following the opening of the trading day, suggesting that the bulls are gathering momentum.
However, trader Daan Crypto Trades cautioned against the surge in Bitcoin open interest. He warned that underwater positions entered near the top could lead to a full retracement if the spot bid disappears. This potential issue needs to be considered as open interest levels increase.
Another trader and analyst, Rekt Capital, stressed the importance of bulls reclaiming higher levels and maintaining them until the end of September. He pointed out that revisiting the $27,100 level, which previously acted as support, could now become resistance unless Bitcoin can secure a Monthly Close above it.
Meanwhile, the focus in the market turned to the impending decision on interest rates by the Federal Reserve on September 20. Despite assumptions that interest rates would not rise, the U.S. Dollar Index (DXY) continued to exhibit strength, surpassing 105 for the first time since mid-March. This index is traditionally inversely correlated with Bitcoin, but the cryptocurrency showed no signs of weakness.
James Straten, a research and data analyst at crypto insights firm CryptoSlate, highlighted the correlation between BTC/USD and DXY. He noted that the last time the DXY was at 105 was in March when Bitcoin was trading below $20,000. The time before that was in Q4 2022, when Bitcoin was priced at $17,000.
It is important to note that this article is not providing investment advice or recommendations. Investors should conduct their own research and analysis before making any investment decisions.
As the cryptocurrency market continues to make headlines, preserving this article as an NFT serves as a historical record and a testament to independent journalism in the crypto space.