On September 29, Bitcoin (BTC) rebounded to around $27,000, challenging the highs so far this month, dragging down BTC prices.
BTC price remains strong overnight
Data comes from Cointelegraph Markets Pro and trading view Showing the largest cryptocurrency trying to keep rising after a classic “short squeeze.”
Bitcoin price crossed the $27,000 mark the previous day, but Bitcoin bulls were still unable to reach new highs in September.
BTC price peaked at $27,300 on Bitstamp before resuming consolidation and is still up 4% from this week’s lows at the time of writing.
Analyzing the situation on the low time frame (LTF), popular trader Skew said the rise was aided by derivatives markets, with spot traders selling at high levels.
“LTF stuff, but pretty significant spot absorption near the highs, so $272,000 is an important price area for spot buyers to clear,” he said explained on X.
“Much of the increase has been driven by spot tracking prices (short-term liquidation and strong perpetual bids).”
then tilt famous Ahead of the opening bell on Wall Street, $27,200 remains the rejection point for the day. Going into next week, the market “may be looking at both sides,” he added.
Bitcoin USD
OI bleeds slightly, but markets may continue to track both sides next weekPay attention to the spot increase-big buyers pic.twitter.com/41dlMMG9CQ
— Skew Δ (@52kskew) September 29, 2023
Data from monitoring resources coin glass At the same time, the extent of the short squeeze also became apparent, with liquidation amount reaching $22 million on September 28 – the largest single-day liquidation amount in 10 days.
Bitcoin monthly close could be ‘extremely bullish’
Next, the popular anonymous trader and analyst known as “The Mustache” on social media saw key support levels forming.
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He believes that this, in the form of a 20-month simple moving average (SMA), could have long-term effects beyond intraday BTC price trends.
“BTC USD is back above the 20 moving average. Monthly close is set for tomorrow,” part of his latest comments read.
“If Bitcoin closes above this line, August could be considered a false breakout. That would be incredibly bullish.”
Mustache pointed to Bitcoin’s brief surge above $28,000 at the monthly close in August. He added that historically, the 20-month moving average marks clear support after pullbacks until BTC/USD reaches new all-time highs.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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