After Wall Street opened on Sept. 1, Bitcoin (BTC) fell further, continuing its monthly closing losses.
BTC Price “Grayscale Hype” Disappears
Data from Cointelegraph Markets Pro and TradingView showed BTC prices were weak, touching their lowest since Aug. 22.
Bitcoin bears took full advantage of August’s monthly close, with downside volatility in the bitcoin and cryptocurrency markets overnight.
Overall, BTC/USD fell 11.2% in August, and looking ahead to September, market watchers are not optimistic about a rebound.
Renowned trader and analyst Rekt Capital described the potential next steps for Bitcoin in its latest YouTube update.
He said that due to “greyscale hype,” bitcoin prices failed to keep rising, with strong selling pressure and weekly relative strength index (RSI) values falling towards a key uptrend line.
A series of exponential moving averages (EMAs) that previously acted as support are now also turning resistance.
Rekt Capital explained: “We’ve seen for a long time, months, actually over a year, that this trendline has held, and if we lose the RSI trendline, we might see further fall.”
New downside targets lie at various points at $23,000, currently traders’ favorite price.
September’s losses “should be reasonable in the range of 7% to 13% by historical standards,” he added, citing data from on-chain monitoring resource CoinGlass.
Rekt Capital went on to say that if there is a relief rally, the price could reach a top of $27,200 — a line that used to act as support.
Dollar strengthens to retest June highs
A strong second day of dollar strength didn’t help Bitcoin’s performance.
Related: Why Are Crypto Markets Falling Today?
As of writing, the US dollar index (DXY) is above 104, recouping recent losses and poised to extend the uptrend that began in mid-July.
The previous local high in June acted as resistance when it was retested in August, and this level is now the level of interest.
Market participants are divided on DXY’s current role in suppressing BTC prices, with the negative correlation between them being challenged several times over the past year.
This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.