Bitcoin (BTC), which was trading at $20,000, crossed the threshold after the Sept. 27 Wall Street Open as US equities rose.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
The U.S. Dollar has plenty of room for growth — traders
Data from TradingView and Cointelegraph Markets Pro confirmed that the $20,000 mark was only a tentative support for the day.
BTC/USD hit local highs of $20.344 overnight on Bitstamp, while U.S. Dollar strength provided modest relief for risk assets all around.
After two hours of trading, the S&P 500 Index and Nasdaq Composite Index were up 0.4% and 0.65% respectively. However, this was quickly reversed.
The U.S. Dollar index (DXY), which was also down 0.1% on the day, was back below the mark of 114 but still close to its highest level since mid-2002.
“U.S. open coming up. “Green numbers, Yields and $DXY are correcting,” Michael van de Poppe (founder and CEO of Eight trading firm) said.
“Q4 is a good time to invest in crypto.”
Crypto Tony, a popular trader, cautioned against assuming that DXY has reached a major top.
He stated, “Bad news to the Bitcoin pump, The Dollar has not yet topped out, so we are looking at more pumps on USD and setbacks in $BTC.”
“Keep an eye out for both these if your goal is to leverage BTC.”
U.S. dollar index (DXY) 1-day candle chart. Source: TradingView
Volume of Binance Bitcoin/USDT reaches all-time high
BTC price volatility continued with days before the monthly close. However, traders demanded that October, traditionally a better month for crypto return, deliver the goods in 2022.
Related: Bitcoin’s wallet is empty after a 10-year hibernation
Crypto Kaleo, a popular trading account, observed that Sept. was the worst month to track price action in the past decade — closing positive only 20% of times.” In a thread posted Sept. 26, Crypto Kaleo stated that “Tracking price movement over the last decade has shown that Sept. has far andaway been the most performing month for BTC — closing positively only 20% of time”.
“Silver lining – Oct. was one of the best months of BTC — positive 78% with a median gain 28%.”
Bitcoin’s first September “green” would require a close to $20,000
Screenshot of BTC/USD monthly returns chart Source: Coinglass
As a hint of what the month close may hold, Binance, a major exchange, recorded its highest daily trading volume ever for its BTC/USDT pairing, with more than 439,000 BTC being traded.
BTC/USDT 1-day candle graph (Binance), with volume. Source: TradingViewcom. You should do your research before making any investment or trading decision.