Bitcoin (BTC) regained some misplaced floor on the Aug. 29 Wall Street open amid discuss of an imminent quick squeeze.
Shorts lose out in modest squeeze larger for BTC
Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD climbing to close $20,400 on Bitstamp as United States equities started buying and selling.
The transfer signaled welcome aid for hodlers, who had seemed on as the pair dove more and more beneath $20,000 through the weekend.
Now, with the market “aggressively short positioned,” circumstances appeared to favor an additional aid bounce to burn these nursing quick trades.
Looks like we’re doing a little bit bearbecue. https://t.co/smRfCWC2C0
— Byzantine General (@ByzGeneral) August 29, 2022
“You know what is next,” widespread Twitter account Il Capo of Crypto warned, reinforcing his perception that the bounce could be adopted by a deeper retracement.
Short squeeze https://t.co/D8rNtSVwsl
— il Capo Of Crypto (@CryptoCapo_) August 29, 2022
Data from on-chain monitoring useful resource Coinglass in the meantime confirmed liquidations starting to mount on the time of writing, with mixed cross-crypto liquidations at $166 million in 24 hours.
U.S. shares themselves opened barely within the purple, whereas the U.S. greenback index (DXY), having earlier put in a brand new 20-year excessive, started retargeting its peak after a previous retracement.
U.S. inventory markets are opening purple, whereas the $DXY exhibits some weak point at the moment.
Wouldn’t anticipate a lot additional draw back on risk-on property and anticipate a slight bounce via the day.
— Michaël van de Poppe (@CryptoMichNL) August 29, 2022
“$DXY could be nearing its macro top similar way Bitcoin has in April 2021,” dealer Jackis summarized.
“Many bearish divergences seen on the Daily chart is defo something to keep an eye on. The moment DXY tops is the moment major assets print the macro bottom.”
“Hard to get too excited”
Zooming out, the mood among analysts remained lackluster in the face of ongoing macro turmoil.
Related: US dollar hits new 20-year high — 5 things to know in Bitcoin this week
After last week’s U.S. Federal Reserve comments removed any hope of a policy pivot, stocks had little impetus for optimism as quantitative tightening looked set to continue.
“It’s hard to get too excited about $BTC and major pump pumps when the SPX looks like this,” trader and analyst Josh Rager concluded.
“There are going to be outlier assets that outperform and still pump in this bearish environment. But overall, outside of those tokens it’s hard to want to go heavy with equities downtrend.”
Altcoins meanwhile offered mixed progress as Bitcoin gained, with Ether (ETH) leading the top 10 cryptocurrencies by market cap.
ETH/USD traded up around 6% on the day at the time of writing, passing $1,500.
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