Bitcoin extended its decline following the Wall Street opening on September 1, as losses from the monthly close persisted.
Cointelegraph Markets Pro and TradingView data tracked the dwindling BTC price performance, which hit its lowest point since August 22.
The downward momentum was fueled by Bitcoin bears capitalizing on the August monthly close, causing significant volatility in both the Bitcoin and cryptocurrency markets throughout the night.
Overall, BTC/USD saw an 11.2% decline in August, leaving little room for optimism about a potential rebound in September, as noted by market experts.
Prominent trader and analyst Rekt Capital shared insights on Bitcoin’s potential future actions in his recent YouTube update.
He highlighted that BTC price was unable to sustain gains attributed to the “Grayscale hype,” with substantial selling pressure and a drop in the weekly relative strength index (RSI) values toward a crucial upward trendline.
Several exponential moving averages (EMAs), previously acting as support, had now switched roles to become resistance.
The long-standing trendline that had held for over a year was at risk, and a breach of the RSI trendline could result in further downward movement, according to Rekt Capital.
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He identified potential price targets for a new decline, ranging on the path toward $23,000, a favored level among traders.
Referring to historical norms and insights from on-chain monitoring resource CoinGlass, he estimated losses of approximately 7% to 13% for September.
In the event of a relief rally, Rekt Capital suggested that the rally might peak at around $27,200, a level that had previously served as a support zone.
However, Bitcoin’s performance was hindered by the U.S. Dollar Index’s (DXY) second consecutive day of robust strength.
The DXY, which stood above 104 at the time of writing, had recovered from recent losses and was expected to continue its upward trajectory that began in mid-July.
The DXY’s strength had previously acted as resistance during a retest in August, following a local high in June.
Market participants were divided over the current influence of the DXY’s strength in suppressing BTC price, as the inverse correlation between the two had been repeatedly challenged over the past year.
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