Bitcoin (BTC) experienced increased volatility on September 8 as a “short squeeze” caused the price to reach new highs. BTC price movements resulted in the liquidation of both short and long positions. The previous day, Bitcoin had gained momentum and reached a high above $26,400 after the daily close. However, the price later returned to below $26,000.
Late traders who attempted to chase the market suffered the consequences. According to data from CoinGlass, short liquidations amounted to $23.5 million on September 7, while the long tally for September 8 was yet to be determined. Popular trader Skew commented on the situation, stating that the shorts had been hunted as expected.
Another trader, Daan Crypto Trades, emphasized the significance of reclaiming lost ground from August. He highlighted that Bitcoin had finally broken above the September monthly open after multiple tests. However, the question remained whether this level would provide as much support as it previously did resistance. CoinGlass data indicated that September tends to produce a downside of around 10% for BTC price.
Trader Crypto Tony dismissed the strength of the overnight move and identified $26,600 as the crucial level to cross. He stated that there would be no entry for him in Bitcoin unless this level was cleared. BTC/USD continued to preserve the 200-day exponential moving average (EMA) at $25,674, despite returning to familiar territory from the first week of September.
Michaël van de Poppe, founder and CEO of trading firm Eight, analyzed Bitcoin’s interaction with the 200-week EMA in previous cycles. He suggested that the current BTC price drop could be the final correction. Van de Poppe compared the current market with the 2015 cycle, highlighting the participation of new institutions. He correlated the two market cycles and concluded that the ongoing correction could be the last.
It is important to note that the article does not provide investment advice or recommendations. Readers are advised to conduct their own research before making any investment or trading decisions.