The Bitcoin price has experience volatility over today’s trading session as the cryptocurrency rallied to the $20,000 level. Social media platform users celebrated the bullish price action but they stopped silently as BTC fell back within its range.
Bitcoin trades at $18,900 as of the writing. The last 24-hour and 7-day losses have been respectively 1% and 33%. In a range between $19,500 and its current levels, the benchmark cryptocurrency trades sideways.
The Bitcoin price is stuck in a range as global currencies trend downwards
The Bitcoin price outperformed all legacy assets, despite the sideways price movement and the persistent downward trend through 2022. According to a report from the New York Times, the cryptocurrency has been trading “slightly” in the green while major currencies and indexes record losses.
The Nasdaq 100 recorded a 10% decrease in September as the Bitcoin price fluctuates between $20,000 and $20,000. As Bitcoin moves in sideways, other global currencies like the British Pound (GBP) and the Euro (EUR) have traded in red over the past thirty days.
These currencies have suffered a loss of 18%-23% against the U.S. Dollar over the last year. GBP has been one of the most volatile currencies in recent days, as it approaches parity against its American counterpart. Meanwhile, the Euro sank and fell from parity with the USD.
In the meantime the U.S.dollar has moved to levels that were last seen more than 20 years ago due to macroeconomic uncertainties and an increased interest in the rest of the world, which support a risky sentiment on global financial markets. These investors seek refuge in the world’s reserve currency.
Michael Saylor of BTC Bull wrote this:
The dollar has weakened against currencies over the past year:
CNY -9, CAD -8, ZAR 17%, AUD-11%, ZAR 11, KRW 18%, EUR-18%, KRW 18%, EUR -18% PLN 21% GBP -22% JPY 33% TRY 52%
In the four last years, the dollar fell -67%. #bitcoin.
— Michael Saylor⚡️ (@saylor) September 26, 2022
Bitcoin Liquidates Leverage Shorts And Longs Positions
Bitcoin appears to be moving away from price discovery as the current global economic conditions are still favorable. On lower timeframes, a pseudonym trader recorded a spike in Open Interest (OI) over today’s trading session.
As high leverage players got taken out with today’s sudden move to the upside and return to the current levels, the Bitcoin price seems poised to move sideways for the time being. However, as NewsBTC reported, the market might see further volatility during this month’s candle close.
Bitcoin’s short-term trajectory will continue to be determined by the performance of legacy financial markets with the Nasdaq 100 and S&P 500 playing a critical role. This is a weak spot with potential downside in the daily close.
The S&P 500 is still hanging on and trying to turn positive on the day.
Today’s close will be key.$SPY $SPX pic.twitter.com/WIlQme2kim
— Justin Bennett (@JustinBennettFX) September 27, 2022