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Bitcoin reaches ‘short squeeze’ trigger zone as BTC price nears $20.4K

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Bitcoin (BTC) regained some misplaced floor on the Aug. 29 Wall Road open amid speak of an imminent quick squeeze.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Shorts lose out in modest squeeze increased for BTC

Information from Cointelegraph Markets Pro and TradingView confirmed BTC/USD climbing to close $20,400 on Bitstamp as United States equities started buying and selling.

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The transfer signaled welcome reduction for hodlers, who had seemed on because the pair dove increasingly below $20,000 throughout the weekend.

Now, with the market “aggressively quick positioned,” circumstances appeared to favor an extra reduction bounce to burn these nursing quick trades.

“You understand what’s subsequent,” in style Twitter account Il Capo of Crypto warned, reinforcing his perception that the bounce can be adopted by a deeper retracement.

Information from on-chain monitoring useful resource Coinglass in the meantime showed 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 twenty-year excessive, started retargeting its peak after a previous retracement.

“$DXY could possibly be nearing its macro prime comparable manner Bitcoin has in April 2021,” dealer JACKIS summarized.

“Many bearish divergences seen on the Each day chart is defo one thing to keep watch over. The second DXY tops is the second main property print the macro backside.”

U.S. greenback index (DXY) 1-hour candle chart. Supply: TradingView

“Arduous to get too excited”

Zooming out, the temper amongst analysts remained lackluster within the face of ongoing macro turmoil.

Associated: US dollar hits new 20-year high — 5 things to know in Bitcoin this week

After final week’s Federal Reserve feedback eliminated any hope of a coverage pivot, shares had little impetus for optimism as quantitative tightening, referred to as QT, seemed set to proceed.

“It is onerous to get too enthusiastic about $BTC and main pump pumps when the SPX appears like this,” dealer and analyst Josh Rager concluded on the day.

“There are going to be outlier property that outperform and nonetheless pump on this bearish surroundings. However general, outdoors of these tokens it is onerous to need to go heavy with equities downtrend.”

Atcoins in the meantime provided combined progress as Bitcoin gained, with Ether (ETH) main the highest ten cryptocurrencies by market cap.

ETH/USD traded up round 6% on the day on the time of writing, passing $1,500.

ETH/USD 1-hour candle chart (Binance). Supply: TradingView

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, it’s best to conduct your personal analysis when making a choice.