- Bitcoin plunged by more than 6 percent as the USD currency index sees an uptick
- An uptick in the DXY affected Bitcoin and gold
- Analysts are warning of “short-term bounce.”
Bitcoin News Today – A slight increase in the US Dollar currency index resulted in an instant downtrend for Bitcoin (BTC). In just a day, the world’s most dominant digital currency plunged by more than 6 percent. Bitcoin lost about 6 percent of its value and plunged towards the $11k mark yesterday. This move comes as fresh strength in the DXY seemed to spell trouble.
Bitcoin Retests Lower-$11,000 Region as the USD Currency Index Amasses Fresh Strength
According to data from CoinMarketCap and Coin360, Bitcoin lost about $850 in less than twenty-four hours on September 2. The move accompanied the recent brief trip of Bitcoin over the $12k hurdle point. Bitcoin has not been able to hold gains over that level despite several attempts this year.
At the moment, analysts are warning of “short-term bounce.” The bounce off $11,150 was a strong day for the US dollar currency index, a metric with which BTC has shown a strong inverse correlation in recent months. After plunging to its lowest level since 2018, the DXY rebounded sharply. The rebound of the DXY pressured both gold and Bitcoin. The value of gold plunged by 0.6 percent on the day, hitting $1,957.
Bitcoin (BTC) Price Today – BTC / USD
| Name | Price | 24H % |
|---|---|---|
 | $0.00 | -0.15% |
Short-Term Bounce Is on the Way
Commenting on the recent price action, Michael van de Poppe – an analyst at Cointelegraph – warned that a wider cryptocurrency market was in for a correction. “And that is why you take some profits on the way. A significant decline on Bitcoin here, couldn’t hold the $11,600 mark,” he said to his followers on twitter.
“Could still, very well, be a wick south, but overall I’m expecting short term bounce coming in. Across the field.”
Bitcoin Starts the New Month with Massive Sell-offs
The new monthly candle of Bitcoin has been met with a ferocious selloff. A new BTC monthly candle opened on September 1 with significant optimism. The monthly candle of August closed over $11,500 for the first time since Bitcoin tested its all-time high in 2017. However, in the near term, traders are leaning cautiously after a sharp selloff in the digital currency market.
Over the past day, the price of Bitcoin is down by more than 6 percent, with Ethereum (ETH) losing more than 10 percent of its value also. Some traders are expecting the price of the digital currency to plunge to the $11k support zone. If Bitcoin breaks below $10,500, chances are it would start a major bearish trend.
Traders are considering $11k and $11,700 as the major levels for the digital currency. However, if BTC remains below $1k for long, it might indicate a bearish pullback. A break over the $11,700 would raise the chances of a rally.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.
