BTC Rollercoaster: September Updates
Bitcoin (BTC) experienced a notable downturn, with its price dipping to $25,847. This drop brought about increased volatility as we approached the Wall Street opening on September 8th, triggered by what can be described as a classic "short squeeze." This unexpected turn of events led to Bitcoin reaching new highs for September.
Bitcoin presents an opportunity to return to the $24,400 level
Bitcoin took traders on a roller-coaster ride, retracing its steps to the $24,400 mark. Data from TradingView revealed that BTC's price movements resulted in the liquidation of both short and long positions.
The day before, Bitcoin had shown signs of upward momentum, ultimately reaching a high above $26,400 after the daily closing. However, a subsequent downturn saw BTC/USD completing a full circle, bringing the pair back below the $26,000 mark at the time of this update.
#Bitcoin doing exactly what I wanted to see -- holding above the range highs.— Jelle (@CryptoJelleNL) September 8, 2023
Want to see this push higher today -- and will cut the trade if we start dropping back into the range. https://t.co/oYTwnMG0JQ pic.twitter.com/AvtmyTNI4Z
Latecomers to the market experienced losses, as indicated by data from CoinGlass, which reported short liquidations totaling $23.5 million on September 7th, with the long positions for September 8th yet to be determined.
As popular trader Skew noted in their overnight market analysis on X (formerly Twitter), "Shorts were hunted down as anticipated."
$BTC Binance & Bybit Open Interest— Skew Δ (@52kskew) September 7, 2023
Shorts got hunted as expected
note the OI added here with small price reaction and decreasing perp bid delta, this implies more shorts scaling into price on this second drive higher https://t.co/OULNlQrQof pic.twitter.com/X1hNlvjbdc
Another trader, Daan Crypto Trades, emphasized the significance of reclaiming the ground lost in August. He shared with X subscribers that "Bitcoin was finally able to break above the September monthly open after testing it numerous times. It is now retesting it. The question is, will it provide as much support as it did resistance? It's up to the bulls to try and maintain a 'green' September."
CoinGlass data confirmed that September typically sees Bitcoin's price decline by nearly 10%, aligning with market expectations for 2023.
Analyst suggests that the BTC price is solidifying its "ultimate correction"
One analyst, Crypto Tony, downplayed the strength of the overnight market move, highlighting that the critical threshold to cross was $26,600. He explained, "We saw a nice rally from the low range of $25,600, but there was no follow-through to reach the high range. So, once again, we find ourselves stuck in the middle of the range. I won't consider entering the Bitcoin market until we clear $26,600."
Despite the ups and downs, BTC/USD continued to hold steady above the 200-day exponential moving average (EMA), which currently stands at $25,674.
Reflecting on Bitcoin's past interactions with the 200-week EMA in previous market cycles, Michaël van de Poppe, the founder and CEO of trading firm Eight, suggested that the market was now undergoing its "final" price correction for Bitcoin. "Technically speaking, we can focus on the price action in 2019, but that doesn't provide a clear case. Comparing the current market to the 2015 cycle (considering the new participants entering the market – institutions), we can draw parallels. In this context, this appears to be the conclusive correction."
There's a level which #Bitcoin must hold in order to avoid a significant crash.— Michaël van de Poppe (@CryptoMichNL) September 7, 2023
Bitcoin is currently holding onto a significant level of support. It's around the $25,500 barrier.
In the meantime, we're facing a month of destruction. September. What's next for Bitcoin? ????… pic.twitter.com/nNI8GmxKuN