Bitcoin Rebounds from Three-Month Lows as Traders Suspect Price Behavior; BTC Shorts Feel the Heat
Summary:
Bitcoin (BTC) rebounds from three-month lows as traders grow suspicious of price behavior. BTC shorts feel the heat as the price adds $1,000. On-chain analysis suggests that BTC faces a support test as bid liquidity is removed from the order book. Previous support “rug pulls” have resulted in market upside in the past. Traders predict that $24,750 will hold as support during the downward move. BTC longs suffer $71 million in liquidations. Credible Crypto sees a breakout in Bitcoin market cap dominance, indicating a potential bullish price move. This article offers no investment advice.
Bitcoin (BTC) bounced back from its lowest point in three months on September 12, as traders expressed doubt about the price behavior of BTC. Data from Cointelegraph Markets Pro and TradingView showed a quick return to levels seen after the weekly close of BTC/USD. The largest cryptocurrency experienced a temporary weakness when Wall Street opened the previous day, briefly dropping below $25,000, marking its worst performance since mid-June. The subsequent recovery pushed the price $1,000 higher, but at the time of writing, it faced resistance at $26,000. Material Indicators warned in advance that BTC's price would soon face a "support test" due to the removal of bid liquidity further down the order book. In previous instances, "rug pulls" had actually resulted in an upside for the Bitcoin market, as large-volume traders cleared liquidity from around the spot price. Co-founder Keith Alan predicted that $24,750 would hold as support during the downward move, which has held true at the time of writing. After the recovery, popular trader Skew suggested that bulls should overcome the $26,000 resistance. Monitoring resource CoinGlass reported total BTC short liquidations of just over $12 million on September 12, while BTC longs suffered $71 million worth of liquidations the previous day. Fellow trader Credible Crypto noticed a potential breakout in Bitcoin market cap dominance, which could be a precursor to the next bullish BTC price movement. He highlighted a local dominance downtrend being tested, which last occurred in mid-June and led to over $7,000 in gains over two weeks. Credible Crypto believed that with the bullish market structure, the held support at $24.8k, and the breakout in BTC dominance, the next upward movement could be just around the corner. This article does not provide investment advice or recommendations. All investments and trading moves involve risk, and readers should conduct their own research before making any decisions.
Published At
9/12/2023 7:01:30 AM
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