Bitcoin (BTC) fell further after the Sep. 1 Wall Street open as monthly close losses continued to play out.
BTC/USD 1-day chart. Source: TradingView
BTC price “Grayscale hype” disappears
Data from Cointelegraph Markets Pro and TradingView followed weakening BTC price performance, which hit its lowest since Aug. 22.
Bitcoin bears took full advantage of the August monthly close, with downside volatility characterizing Bitcoin and crypto markets overnight.
Overall, BTC/USD lost 11.2% last month, and looking ahead to September, there was little optimism regarding a rebound among market observers.
In his latest YouTube update, popular trader and analyst Rekt Capital delineated Bitcoin’s potential next steps.
BTC price had failed to hold on to gains coming courtesy of “Grayscale hype,” he said, with selling pressure strong and weekly relative strength index (RSI) values dropping toward a key rising trendline.
A cluster of exponential moving averages (EMAs), previously acting as support, were also now flipping to resistance.
“We’ve seen for a very long time, multiple months — over a year now, actually — that this trendline is holding, and if we lose this RSI trendline, we’ll probably see further downside,” Rekt Capital explained.
BTC/USD annotated chart with RSI data. Source: Rekt Capital/YouTube
Targets for a fresh drop lay at various points on the way to $23,000, now a favorite among traders.
“Somewhere between 7% and 13% should be reasonable” for September losses based on historical norms, he added, referencing data from on-chain monitoring resource CoinGlass.
BTC/USD monthly returns chart (screenshot). Source: CoinGlass
Should a relief rally occur, Rekt Capital continued, this could top out at $27,200 — a line in the sand which used to act as support.
U.S. dollar strength retests June highs
Bitcoin’s performance was not helped by a second day of solid upside for U.S. dollar strength.
Related: Why is the crypto market down today?
The U.S. dollar index (DXY) was above 104 at the time of writing, having made up for recent losses and apt to continue an uptrend which began in mid-July.
A previous local high in June acted as resistance upon a retest in August, with this now the level of interest.
Market participants are split over the current role of DXY strength in suppressing BTC price, with an inverse correlation between them repeatedly challenged over the past year.
U.S. dollar index (DXY) 1-day chart. Source: TradingView
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: https://cointelegraph.com/news/bitcoin-rsi-showdown-btc-price-new-2-week-low
