Bitcoin fails to avoid returning back under $20,000 after local highs prove too much to sustain.
Bitcoin (BTC) crossed under $20,000 after the Sept. 27 Wall Street open as United States equities inched higher.
U.S. dollar has room to run — trader
BTC/USD had managed local highs of $20,344 on Bitstamp overnight, while retracing U.S. dollar strength gave modest relief to risk assets across the board.
The S&P 500 and Nasdaq Composite Index had been up 0.4% and 0.65%, respectively, after two hours’ trading, but subsequently reversed.
At the same time, the U.S. dollar index (DXY) was down 0.15% on the day, back below the 114 mark but still near its highest since mid-2002.
“U.S. open coming up. Green numbers, while Yields & $DXY are correcting,” Michaël van de Poppe, founder and CEO of trading firm Eight, commented.
“Time for Q4 to be good for crypto.”
Popular trader Crypto Tony nonetheless cautioned on assuming that DXY had put in a major top.
“Bad news for the Bitcoin pump, the Dollar has not quite topped out yet, so we are looking for more pumps on the dollar and setbacks on $BTC,” he decided.
“Keep an eye on both of these if you plan on leveraging BTC.”
Binance BTC/USDT volume hits all-time high
With days to go before the monthly close, further BTC price volatility was expected, while traders demanded that October — traditionally a better month than September for crypto return — deliver the goods in 2022.
“Tracking price action over the past decade, Sept. has far and away been the worst performing month for BTC — closing positive only 20% of the time,” popular trading account Crypto Kaleo observed in a thread on Sept. 26.
“Silver lining — Oct. has been one of the best months for BTC — positive 78% of the time w/ a median gain of 28%.”
A close above $20,000 would be just enough for Bitcoin’s first “green” September since 2016.
In a sign of what the monthly close might have in store, meanwhile, major exchange Binance recorded its highest-ever daily trading volume for its BTC/USDT pair, with over 439,000 BTC equivalent changing hands.
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