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Bitcoin price nearing $20.4k after a week of decline

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It seems that Bitcoin began  gaining on August 29th, at the beginning of the Wall Street Open. Nearing 20,400 on the day, BTC is now regaining some last ground, sparking debate over a short squeeze soon to come. 

Maret data has indicated that the BTC/USD pair is nearing $20,400 at the beginning of the Wall Street trading week. Signaling a relief for holders who were disheartened by a week of decline on the week of August 22nd, conditions currently seem to be calling for further relief. 

A tweet by Byzantine General rt referred to the derivatives market as “aggressively short positioned.” 

And in a tweet by Il Capo of Crypto, he issued a warning related to his idea that the bounce may be followed by a stronger retracement. 

Data from Coinglass has indicated a number of liquidations with a total of $166 million in cross-crypto liquidations in a 24 hour period. 

Opening in the red on th day, US stocks witnessed the US dollar index usher in a new 20–year high which began a retracement leading to a new target for its peak. 

Twitter user, JACKIS said in a tweet that the USDXY Ind “could be nearing its macro top similar way #Bitcoin has in April 2021.”

“Many bearish divergences seen on the Daily chart are defo something to keep an eye on. The moment DXY tops is the moment major assets print the macro bottom.”

With recent comments by the Federal Reserve staving off any inclination for a change in policy, stocks carried little wait for the outlook on the crypto stage. 

“It’s hard to get too excited about $BTC and major pump pumps when the SPX looks like this,” trader and analyst Josh Rager.

“There are going to be outlier assets that outperform and still pump in this bearish environment. But overall, outside of those tokens it’s hard to want to go heavy with equities downtrend.”

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