Bitcoin (BTC) begins the second week of September, still attempting to establish $20,000 as support as the bears regain control.
The largest cryptocurrency emerges from a sideways weekend with a nearly perfect weekly close.
In September 2022, BTC/USD is down 1.6%, and while the losses are minor, plenty of possible catalysts are on the horizon.
Much of the world is still in macroeconomic chaos, with the focus shifting to Europe as the energy crisis unfolds and the euro falls to twenty-year lows against the U.S. dollar.
Stocks also struggle with a strong dollar, leaving limited room for cryptocurrencies to burst out to the upside.
Bitcoin has recently completed a $20,000 weekly close
Bitcoin bulls have had it easy this weekend, with the price bouncing around $20,000 for two days due to a lack of volatility.
The lack of overall direction meant that current price estimates remained unchanged, with even the weekly close leaving the market wondering.
This manifested in the form of nearly precisely $20,000 on Bitstamp, followed by downward price pressure in the early hours of the next week.
Meanwhile, data from Material Indicators, an on-chain analytics resource, showed bulls “fighting” for $20,000 at the close, with new bid support coming directly below on the Binance order book.
As mentioned last week, the U.S. dollar’s rise remains a persistent negative for bitcoin and risk assets. DXY is currently shattering a multi-decade resistance level of 110, while $BTC is consolidating and has broken its daily bear flag two weeks ago.
Hodlers continue to acquire strength
Long-term holders (LTHs) are knuckling down to weather the BTC price storm – and breaking local records.
This week’s data from on-chain monitoring startup Glassnode reveals that even coins purchased just a year ago gradually become dormant. Despite unrealized losses, buyers are refusing to give up.
Thus, the percentage of BTC supply that has been stationary in its wallet for a year or more has reached a new all-time high of 65.77%.
Sentiment has dropped to six-week lows
Overall, the crypto market appears to have entirely retraced its bullish phase, which began in the second half of July.
The Crypto Fear & Greed Index, the iconic emotion gauge that hit just 20/100 over the weekend, epitomizes this, as it always does.
The Index is now firmly back in the “severe fear” zone and has more than halved in the last three weeks alone, indicating the magnitude of market players’ unexpected cold feet.
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