Bitcoin Faces RSI Showdown as Price Drops To New 2-Week Low

Bitcoin Loses Ground as Monthly Close Looms

The price of Bitcoin (BTC) slipped further following the Wall Street opening on September 1, with losses continuing to accumulate at the monthly close.

Data from Cointelegraph Markets Pro and TradingView revealed that BTC's price performance hit its lowest point since August 22, as bears took full advantage of the August monthly close. The resulting downside volatility has affected both Bitcoin and the overall cryptocurrency market.

Last month, BTC/USD experienced an 11.2% loss, leaving market observers skeptical about a potential rebound in September.

Trader Predicts Potential Next Steps for Bitcoin

Crypto trader and analyst, Rekt Capital, shared his insights on Bitcoin's next moves in his recent YouTube update.

According to Rekt Capital, BTC's failure to sustain gains from the "Grayscale hype" has led to strong selling pressure. The weekly relative strength index (RSI) values are also dropping toward a crucial upward trendline. Additionally, several exponential moving averages that previously provided support are now becoming resistance levels.

Traders are eyeing a drop to around $23,000, which is now considered a likely target. Based on historical data, Rekt Capital estimates that September losses could be between 7% and 13%.

If a relief rally were to occur, it could potentially reach $27,200, a level that previously acted as support.

US Dollar Strength Impacts Bitcoin

Bitcoin's performance has been further hindered by the growing strength of the US dollar.

At the time of writing, the US dollar index (DXY) was above 104, recovering from recent losses. The trend, which started in mid-July, is expected to continue as the previous local high in June now serves as a resistance level.

Market participants remain divided on the impact of US dollar strength on suppressing BTC's price. Despite a year-long inverse correlation, the relationship between the two has been repeatedly challenged.

Note: This article does not contain investment advice or recommendations. Traders and investors should conduct their own research and assess the risks involved.