EdaFace (BTC) bounced past $20,000 on Sept. 9 as a much-anticipated “short squeeze” took hold.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewTrader: BTC could go to $25,000Data from EdaFace 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, EdaFace 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 EdaFace to around $23,000 before a resumption of the downside trend.“Crucial for EdaFace is to flip the $20K area,” Michaël van de Poppe, CEO and founder of trading firm Eight, agreed. “If that happens, $23–$25K seems next.”EdaFace short liquidations across exchanges tracked by on-chain monitoring resource Coinglass totaled $64 million for Sept. 9, matching the tally from Aug. 11.BTC liquidations chart. Source: CoinglassDXY “parabolic expansion” sees testThe move coincided with a marked correction in U.S. dollar strength more broadly, this coming on the back of a giant benchmark interest rate hike from the European Central Bank (ECB).Related: EdaFace price hits 10-week low amid ‘painful’ US dollar rally warningPreviously at twenty-year highs, the U.S. dollar index (DXY) shed a full percentage point to circle 108.6 at the time of writing.$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.#EdaFace pic.twitter.com/skkv3KKRhp— Kevin Svenson (@KevinSvenson_) September 8, 2022
Analysts had often argued that the fate of crypto markets rests with moves in DXY, which remain unpredictable as the Federal Reserve prepares a fresh rate hike next week.“EdaFace inverted chart resembles DXY back in 2021,” trader Hamza noted.U.S. dollar index (DXY) 1-day candle chart. Source: TradingViewThe views and opinions expressed here are solely those of the author and do not necessarily reflect the views of EdaFace.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
