US dollar smashes yet another 20-year high as Bitcoin price sags 2.7%
Bitcoin (BTC) faced familiar pressure on the Sept. 1 Wall Street open as the U.S. dollar hit fresh two-decade highs.
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it fell to $19,658 on Bitstamp, down 2.7% from the day’s high.
The pair faced stiff resistance trying to flip the important $20,000 mark to solid support, with macro cues further complicating the picture for bulls.
That came in the form of a resurgent U.S. dollar index (DXY) on the day, which beat previous peaks to reach 109.97, its highest since September 2002.
Risk assets thus broadly lost ground, with the S&P 500 and Nasdaq Composite Index trading down 1% and 2%, respectively at the time of writing.
“DXY with another strong day,” popular crypto trading account Kaleo summarized on Twitter.
Other commentators, including crypto account TXMC Trades, noted the declining Japanese yen as an additional dollar booster. USD/JPY hit 140.21, marking its highest since August 1998.
RSI divergence traders in disbelief with $DXY bull continuation. It’s almost as if RSI is a bounded oscillator and should not be used for regular divergence
“Dollar at levels last seen in 2002. Key time here it seems. Bulls need a reversal. Bears need a break out,” NorthmanTrader founder, Sven Henrich added, noting that the DXY relative strength index (RSI) was “very stretched.”
Further clouds on the horizon meanwhile made Sept. 15 a key date in crypto traders’ diary.
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