Traders brace for Bitcoin price volatility as DXY 2022 gains near 20%
Bitcoin (BTC) volatility edged higher during Sept. 26 as the Wall Street open avoided significant losses.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $19,000 on the day, with hourly candles of 1.5%–2% not uncommon.
The pair was expected to break out of its narrow trading range in the short term, having consolidated since Sept. 22.
For Michaël van de Poppe, founder and CEO of trading firm Eight, a tap of the area at the top of the range should signal acontinuation higher.
“Theory still stands for Bitcoin,” he told Twitter followers on the day.
On-chain analytics resource Material Indicators agreed on volatility returning.
“BTC is trading in a tight range. Volatility will increase as the week progresses toward the Monthly Close, which coincides with Monthly and Quarterly Options expiry,” it wrote in a Twitter thread on the current state of the market.
Eyeing a longer-term range, meanwhile, fellow trader and analyst Josh Rager suggested that an optimistic scenario could see BTC/USD echo its growth from the first half of 2019.
“Uncertain if a bottom is in for Bitcoin but if $BTC price starts making its way back up to $24k+, I'll certainly be paying attention,” he tweeted.
Rager acknowledged that the macroeconomic environment this year was “different” from 2019.
On the macro topic, United States equities stabilized at the Sept. 26 Wall Street open, helping highly-correlated crypto to avoid downside volatility.
Related: ‘The bond market bubble has burst’ — 5 things to know in Bitcoin this week
The S&P 500 and Nasdaq Composite Index were down 0.35% and 0.65% on the day, respectively.
The U.S. dollar index (DXY) nonetheless looked primed to attack its latest twenty-year highs, having retraced only
Read more on cointelegraph.com
