Bitcoin (BTC) experienced further declines after the Wall Street opening on September 1st, extending its monthly losses. According to data from Cointelegraph Markets Pro and TradingView, the weakening performance of BTC led to its lowest price since August 22nd.
Bitcoin bears took full advantage of the August monthly close, resulting in downside volatility in both Bitcoin and the cryptocurrency markets overnight. In August, BTC/USD lost 11.2%, and market observers held little optimism for a rebound in September.
Rekt Capital, a popular trader and analyst, provided insights on Bitcoin’s potential next steps in his latest YouTube update. He noted that BTC price had failed to maintain gains attributed to the “Grayscale hype” and that selling pressure was strong. Additionally, the weekly relative strength index (RSI) values were dropping towards a key rising trendline. Rekt Capital explained that if the RSI trendline was lost, further downside could be expected. Several exponential moving averages (EMAs), which previously acted as support, were now transforming into resistance.
Traders favored a drop to $23,000 as the next target for BTC, and historical data from on-chain monitoring resource CoinGlass suggested that September losses between 7% and 13% were reasonable.
Rekt Capital also mentioned the possibility of a relief rally, stating that it could reach a peak at $27,200, a level that previously served as support.
Bitcoin’s performance was further hindered by the strength of the U.S. dollar, which experienced a second consecutive day of significant upside. The U.S. Dollar Index (DXY) was above 104 at the time of writing, recovering from recent losses and continuing an uptrend that began in mid-July. The previous local high in June acted as resistance when retested in August and is now the level of interest.
The relationship between the strength of the U.S. dollar and BTC price has been a topic of debate among market participants. While an inverse correlation between the two has been repeatedly challenged over the past year, the current role of DXY’s strength in suppressing BTC price remains uncertain.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.