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

cointelegraph.com:

Bitcoin (BTC) bounced past $20,000 on Sep. 9 as a much-anticipated “short squeeze” took hold.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD adding as much as $2,700 (8.7%) in hours on the day, reaching its highest since Aug. 26.

After weeks of ranging punctuated with successive moves to the downside, Bitcoin thus finally gave bulls what they wanted.

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

“Bears very weak here, imo it keeps going up soon,” he forecast.

Il Capo of Crypto had long predicted a relief bounce taking Bitcoin to around $23,000 before resumption of the downside trend.

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

Bitcoin short liquidations across exchanges tracked by on-chain monitoring resource Coinglass totaled $64 million for Sep. 9, matching the tally from Aug. 11.

The move coincided with a marked correction in U.S. dollar strength more broadly, this coming on the back of a giant benchmark interest rate hike from the European Central Bank (ECB).

Related: Bitcoin price hits 10-week low amid 'painful' US dollar rally warning

Previously at twenty-year highs, the U.S. dollar index (DXY) shed a full percentage point to circle 108.6 at the time of writing.

$DXY Parabolic Expansion 107.70 is the 50% retrace fib level from the last swing low. This is the level that will either be the next higher low for continued parabolic expansion, or if we fall below it, will signal that the trend is losing momentum.#Bitcoin pic.twitter.com/skkv3KKRhp

Analysts had often argued that the fate of crypto markets rests with moves in DXY,