Bitcoin Squeeze to $23,000 Still Open As Cryptocurrency Market Cap Bears Major Support

Bitcoin (BTC) returned to $20,000 on September 2 amid renewed bets for a “short pressure” rally.

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

Trader eyes trigger short pressure 20700 dollars

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is recovering from another drop below the $20,000-a-day mark, with range-bound behavior continuing.

The pair gave little insight into the direction the next breakout could be, with differing opinions on the surrounding environment.

Amid negative pressures on risky assets and the strength of the United States dollar, the general consensus appeared in favor of continued long-term weakness.

For the famous Il Capo of Crypto trader, there is still reason to believe that the bounce bounce could enter first. With the majority of the market expecting immediate losses to continue, short positions can be ‘squeezed out’, driving the spot price out of the multi-day trading range to target up to $23,000.

“TL major drop is broken. Bullish confirmation of short pressure will be a break of 20700-20800 resistance. Next, we should see 22500-23000,” he Tell Twitter followers per day:

“Neutralizing the idea of ​​short pressing: the 19500 break and the main confirmation would be a clean break of the 19000.”

Bitcoin is hovering around $20,100 at the time of writing, and it still requires effort to enter the launch territory for short squeeze.

Regarding the dollar, other crypto sources argue that the status quo has yet to show signs of fundamental change. The US Dollar Index (DXY) hit a twenty-year high on September 1st.

“This will end with global markets capitulating and blowing up the top of the dollar at some point,” said analyst Matthew Hyland added:

“We haven’t gotten there yet.”

US Dollar Index (DXY) candlestick chart. Source: TradingView

The DXY is consolidating at around 109.3 at the time of writing, after hitting 109.97.

Cryptocurrency market cap offers hope in bear market

Meanwhile, Michael van de Poppe, founder of coaching firm Eight Global, offered a more optimistic view.

RELATED: Total Cryptocurrency Market Cap Continues to Crumble as Dollar Index Reaches 20-Year High

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

With BTC/USD operating below the 200-week moving average (MA) for an extended period – a first in Bitcoin history – sentiment was not “unjustified” in favor of further losses.

“Importantly, watching the total market capitalization chart makes more sense, as it gives one more information on this,” he explained:

“Total market capitalization is showing support soon, as this price kept the 200 MA as support and also settled at the previous all-time high.”

Thus, van de Poppe predicted a possible retest of the 200 moving average, at which point a clearer bottom signal could have been printed “while most people are expecting a breakdown towards $12,000.”

Crypto capital candles 1 week chart. Source: TradingView

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