Bitcoin price reclaims support at $22,000 as the DXY drifts lower
NEW YORK (Sept 13) The cryptocurrency market got the week started off on the right foot as Monday saw Bitcoin (BTC) reclaim support at $22,000 for the first time since Aug. 19 as a weakening DXY led to gains across global financial markets.
Data from TradingView shows that the price of Bitcoin began to increase in the early trading hours and accelerated to a daily high near $22,500, where bulls now battle bears in an attempt to flip resistance into support.
BTC/USD 4-hour chart. Source: TradingView
The early morning gains were addressed in the morning Bitcoin update from Senior Kitco Market Analyst Jim Wyckoff who noted that the three-week high in BTC price has negated a price downtrend on the daily bar chart.
"Recent upside price action suggests a near-term market bottom is in place and that prices can continue to work sideways to higher in the near term," Wyckoff said.
As for what to look for to confirm a bullish outlook moving forward, independent market analyst Michaël van de Poppe suggested that the BTC price needs to hold above $21,600 in the near term before attempting to challenge resistance at $23,300.
When it comes to #Bitcoin, I'd preferably want to see it hold above $21.6-21.8K for now.
Then, the next resistance can be found around $23.3K and then we can be seeing sideways action & strength on altcoins.
For now, trend is up for #Bitcoin. pic.twitter.com/33Cd9TOk2Z— Michaël van de Poppe (@CryptoMichNL) September 12, 2022
On the flip side, market analyst and pseudonymous Twitter user il Capo of Crypto warned that the current gains are nothing more than a bear market short squeeze that could soon see BTC price plummet once again.
Most people getting bullish now. Remember that this is a short squeeze, a bounce that happens during a bear market to continue the downtrend afterwards.
I still expect a little bit higher (22500-23000), but soon I will turn full bearish again.— il Capo Of Crypto (@CryptoCapo_) September 12, 2022
Ethereum Merge arrives on September 15
The major story in crypto this week is the Ethereum (ETH) Merge, which is scheduled to take place in less than three days, around 12:00 GMT or a little after on September 15.
The hype around the Merge has benefited the price of Ether, which has climbed 14.6% to $1,710 in just the past week after hitting a low of $1,491 on Sept. 7.
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