Bitcoin Jumps $1,000 as Shorts Feel the Heat
Bitcoin (BTC) saw a rebound from three-month lows on September 12, following suspicion among traders about its price behavior. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin experienced a snap return to levels seen after the weekly close of BTC/USD. The cryptocurrency had faced immediate weakness the day before, briefly dipping below $25,000, marking its worst performance since mid-June. However, Bitcoin made a comeback, surging $1,000 higher. Despite the recovery, the $26,000 level still acted as resistance.
Earlier analysis by on-chain monitoring resource Material Indicators warned that Bitcoin’s price would soon face a “support test” due to bid liquidity further down the order book being removed. Material Indicators also noted that previous “rug pulls” of support had resulted in upside movement in the Bitcoin market.
Co-founder Keith Alan predicted that $24,750 would hold as support on the down move, a prediction that remains true at the time of writing. After the recovery, popular trader Skew referred to it as a “textbook short squeeze” and called for bulls to overcome the $26,000 resistance.
Data from monitoring resource CoinGlass showed that total BTC short liquidations amounted to just over $12 million on September 12, while BTC longs suffered losses of $71 million the day before.
Optimistic traders like Credible Crypto believe that a breakout in Bitcoin market cap dominance could be a precursor to the next bullish BTC price move. In a recent analysis, Credible Crypto highlighted a downtrend in local dominance being tested, which previously led to over $7,000 in gains over two weeks.
“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,” Credible Crypto stated.
Please note that this article does not contain investment advice or recommendations. Readers should conduct their own research before making any decisions.
– Cointelegraph Markets Pro
– Material Indicators
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