Bitcoin (BTC) bounced around $27,000 on Sep. 29 as a challenge to month-to-date highs dragged BTC price action upward.
BTC price maintains overnight strength
Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency attempting to hold gains after a classic “short squeeze.”
The day prior offered a trip past the $27,000 mark, with Bitcoin bulls nonetheless unable to seal a fresh peak for September.
Topping out at $27,300 on Bitstamp, BTC price strength then returned to consolidate, still up 4% versus the week’s low at the time of writing.
Analyzing the situation on low timeframes (LTFs), popular trader Skew said that the upside had come courtesy of derivatives markets, with spot traders selling at the highs.
“LTF stuff but pretty clear spot absorption around the high so $27.2K is an important price area to clear for spot buyers,” he explained on X.
“Most of the push up was perp driven with spot trailing price (short liquidations & strong perp bid).”
Skew subsequently noted that $27,200 remained a rejection point on the day, ahead of the Wall Street open. Going into next week, he added, the market was “likely to hunt both sides of the book.”
OI bleeding a bit but market is likely to hunt both sides of the book into next week
Note the spot delta – large buyer pic.twitter.com/41dlMMG9CQ
— Skew Δ (@52kskew) September 29, 2023
Data from monitoring resource CoinGlass meanwhile revealed the extent of shorts getting squeezed, with liquidations reaching $22 million on Sep. 28 — the largest single-day tally in ten days.
Bitcoin monthly close may be “incredibly bullish”
Continuing, the popular pseudonymous trader and analyst known as Moustache on social media eyed a key support reclaim in the making.
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Coming in the form of the 20-month simple moving average (SMA), this, he argued, could have longer-term consequences beyond the intraday BTC price trend.
“$BTC is back ABOVE the SMA 20 line. Monthly close is tomorrow,” part of his latest commentary read.
“If Bitcoin closes above this line, August can be considered a fakeout. That would be incredibly bullish.”
Moustache referenced Bitcoin’s brief spurt past $28,000 into the August monthly close. He added that historically, the 20-month SMA marked definitive support after reclaims, which held until BTC/USD made a new all-time high.
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