Bitcoin squeezes past $20K on US dollar dip as BTC price rises 8.7%

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Bitcoin (BTC) bounced past $20,000 on September 9 as a much anticipated “short squeeze” occurred.

BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingView

Trader: BTC can go up to $25,000

Data from TBEN Markets Pro and TradingView showed that BTC/USD added as much as $2,700 (8.7%) in hours in the day, reaching its all-time high since August 26.

So, after weeks of varying, punctuated by successive down moves, Bitcoin finally gave the bulls what they wanted.

For Crypto’s popular trading Twitter account Il Capo, at the time of writing, it still had potential to continue, with BTC price action eyeing $21,000.

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“Bears are very weak here, imo it keeps rising fast,” he said prediction.

Crypto’s Il Capo had long predicted that relief that took Bitcoin to around $23,000 before the downtrend resumed.

“Critical for Bitcoin is to flip the $20K area,” said Michaël van de Poppe, CEO and founder of trading firm Eight. agreed.

“If that happens, $23-$25K looks like the next one.”

Bitcoin short liquidations on exchanges followed by on-chain monitoring resource Coinglass totaled $64 million for September 9, which matches the August 11 figure.

BTC liquidations chart. Source: Coinglass

DXY “parabolic expansion” sees test

The move coincided with a marked correction in the strength of the US dollar in general, following a massive hike in the benchmark rate of the European Central Bank (ECB).

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Related: Bitcoin Price Hits 10-Week Low Amid ‘Painful’ US Dollar Rally Warning

The US dollar index (DXY), which was previously at its highest point in twenty years, lost a full percentage point to 108.6 at the time of writing.

Analysts had often argued that the fate of crypto markets rests with moves in DXY, which remain unpredictable as the Federal Reserve prepares for another rate hike next week.

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Bitcoin inverted chart looks like 2021 DXY, trader Hamza noted.

US Dollar Index (DXY) 1 Day Candlestick Chart. Source: TradingView

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