Thursday, 21 September 2023

Crypto News

Bitcoin price must take $26K, says trader after ‘textbook short squeeze’

Bitcoin price must take $26K, says trader after 'textbook short squeeze'

Bitcoin (BTC) rebounded off three-month lows on Sep. 12 as traders voiced suspicion over BTC price behavior.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin shorts feel heat as BTC price adds $1,000

Data from Cointelegraph Markets Pro and TradingView followed a snap return to levels seen after the weekly close on BTC/USD.

Bitcoin had seen immediate weakness on the previous day’s Wall Street open, briefly dipping below $25,000 to cap its worst performance since mid-June.

The subsequent comeback took the largest cryptocurrency $1,000 higher, but at the time of writing, $26,000 still acted as resistance.

Ahead of time, on-chain monitoring resource Material Indicators warned that BTC price would soon face a “support test” thanks to bid liquidity further down the order book being removed.

In further preemptive analysis, Material Indicators and others noted that previous support “rug pulls” had ultimately produced Bitcoin market upside instead, with large-volume traders clearing liquidity from immediately around spot price.

Continuing, co-founder Keith Alan predicted that $24,750 would hold as support on the down move, something which at the time of writing holds true.

After the recovery, which he called a “textbook short squeeze,” popular trader Skew was among those calling for bulls to overcome $26,000 resistance.

“$25.6K – $25.3K still important for structure & confirmation of buyers,” part of additional commentary stated.

Data from monitoring resource CoinGlass showed total BTC short liquidations at just over $12 million for Sep. 12 so far, while $71 million in BTC longs suffered the day prior.

BTC liquidations chart (screenshot). Source: CoinGlass

Bitcoin price: “Next impulse” incoming?

Optimistic as ever, meanwhile, fellow popular trader Credible Crypto eyed a Bitcoin market cap dominance breakout as a potential precursor to the next bullish BTC price move.

Related: Double top ‘likely’ confirmed — 5 things to know in Bitcoin this week


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