Bitcoin (BTC) experienced fluctuations around the $27,000 mark on September 29 as it attempted to reach new highs for the month. The cryptocurrency showed strength overnight, maintaining gains after a classic “short squeeze.” Data from Cointelegraph Markets Pro and TradingView indicated that spot traders were selling at the highs, while derivatives markets were driving the upside.
The day prior, Bitcoin surpassed the $27,000 mark, but failed to establish a fresh peak for September. It reached a high of $27,300 on Bitstamp before consolidating. Despite this, the price of BTC was still 4% higher than the week’s low at the time of reporting.
Popular trader Skew analyzed the situation on low timeframes and noted that spot absorption around the high of $27.2K was important for spot buyers. He explained that most of the push up was driven by perpetual swaps (perp), with short liquidations and a strong perp bid. However, $27,200 remained a rejection point on the day, especially ahead of the Wall Street open. Skew anticipated that the market would “hunt both sides of the book” going into the next week.
CoinGlass, a monitoring resource, revealed that shorts were getting squeezed, with liquidations reaching $22 million on September 28. This was the largest single-day tally in ten days.
Looking ahead, the pseudonymous trader and analyst known as Moustache highlighted a key support level to monitor. He observed that Bitcoin was back above the 20-month simple moving average (SMA), which could have longer-term consequences. He stated that if Bitcoin closed above this line, August’s price action would be considered a fakeout and would be incredibly bullish. Historical data showed that the 20-month SMA acted as definitive support after reclaims, continuing until BTC/USD reached a new all-time high.
It is important to note that this article does not provide investment advice. Every investment and trading move carries risk, and readers should conduct their own research before making any decisions.