Bitcoin (BTC) experienced a rebound on September 12, bouncing back from three-month lows. Traders, however, remained skeptical about the behavior of BTC’s price. The rise in BTC’s price took place after the weekly close on BTC/USD, with data from Cointelegraph Markets Pro and TradingView tracking this development.
On the previous day, Bitcoin had experienced immediate weakness when Wall Street opened, briefly dipping below $25,000. This drop marked its worst performance since mid-June. However, the cryptocurrency made a comeback, surging $1,000 higher. As of the time of writing, BTC/USD was still facing resistance at the $26,000 level.
Prior to this rebound, Material Indicators, an on-chain monitoring resource, had warned that BTC’s price would face a “support test” due to the removal of bid liquidity further down the order book. However, preemptive analysis from Material Indicators and others indicated that previous support “rug pulls” had ultimately led to upside in the Bitcoin market. Large-volume traders were seen clearing liquidity from around the spot price.
Further analysis from co-founder Keith Alan predicted that $24,750 would hold as support during the downward move. This prediction remained true at the time of writing. The recovery in BTC’s price was referred to as a “textbook short squeeze” by popular trader Skew. Skew and others called for bulls to overcome the resistance at $26,000.
CoinGlass, a monitoring resource, reported that total BTC short liquidations reached just over $12 million on September 12. The previous day, BTC longs suffered losses of $71 million. Such data suggested ongoing volatility in the cryptocurrency market.
Another popular trader, Credible Crypto, remained optimistic about Bitcoin’s price. He observed a potential breakout in Bitcoin’s market cap dominance, which could serve as a precursor to the next bullish price move. In his analysis, he highlighted a local dominance downtrend being tested, similar to what occurred in mid-June. This previous downtrend had sparked gains of over $7,000 over two weeks.
Credible Crypto stated, “With bullish market structure intact on BTC, 24.8k held, and BTC dominance breaking out, I think there is a decent argument to be made that our next impulse is just around the corner.”
It is important to note that this article does not offer investment advice or recommendations. Readers are advised to conduct their own research when making investment decisions.
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