Bitcoin’s Pressure To $23,000 Still Open As Crypto Market Cap Holds Critical Support

Bitcoin (BTC) returned to $20,000 on Sept. 2.

BTC/USD 1 hour candlestick chart (Bitstamp).Source: Trading View

Traders Focus on Short Squeeze Trigger at $20,700

Data from Cointelegraph Markets Pro and TradingView show that BTC/USD has recovered from another plunge below $20,000 on the day and continues its rangebound move.

The pair gave little insight into what direction the next breakout might take and disagreed about their surroundings.

Amid downward pressure on risk assets and a strong US dollar, the overall consensus appeared to be in favor of continued secular weakness.

But for popular Crypto trader Il Capo, there was still reason to believe that a bailout of relief could come in first. As much of the market expects near-term losses to continue, there will be a “squeeze” of short positions, pushing the spot price out of the multi-day trading range and potentially targeting $23,000.

“Main bearish TL broken. Bullish confirmation of short squeeze will break resistance at 20700-20800. After this we should see 22500-23000.” Said Twitter followers of the day:

“Short Squeeze Idea Deactivation: Breaking 19500, main confirmation is breaking 19000 completely.”

Bitcoin is above $20,100 at the time of writing and still needs some effort to get into the launch zone for a short squeeze.

As for the dollar, other crypto sources argued that the status quo still shows no signs of fundamental change.

“This will end with the capitulation of global markets and a breakthrough of the US dollar at some point,” said analyst Matthew Hyland. Added:

“We are not there yet.”

A 1-hour candlestick chart of the US Dollar Index (DXY).Source: Trading View

DXY is consolidating around 109.3 at the time of writing, reaching 109.97.

Crypto Market Cap Offers Bear Market Hopes

More optimistic, meanwhile, was Michael van de Poppe, founder of training firm Eight Global.

Related: Total Crypto Market Cap Continues to Fall as Dollar Index Hits 20-Year High

In the latest YouTube update of the day, Van de Poppe told market participants to pay less attention to Bitcoin charts and instead focus on the overall cryptocurrency market cap.

With BTC/USD staying below the 200-week moving average (MA) for an extended period of time (first time in Bitcoin history), it was “unjustified” for sentiment to fuel further losses.

“More importantly, it makes more sense to look at the market cap chart, as it gives us a lot more information about this,” he explained.

“The total market cap shows that support is imminent, as it holds the 200 MA as support and is also supported by previous highs.”

Van de Poppe therefore predicted a possible retest of the 200 MA and would have issued a clearer bottom signal “while most people expected a crash to $12,000”. .

Cryptocurrency Market Cap 1 Week Candlestick Chart.Source: Trading View

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