bitcoin (btc) bounced around $27,000 on September 29 as a challenge to month-to-date highs dragged btc price action higher.
btc Price Stays Strong Overnight
Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency trying to hold on to gains after a classic “short squeeze.”
The previous day offered a trip beyond the $27,000 mark, and bitcoin bulls were still unable to seal a new peak for September.
Hitting a high of $27,300 on Bitstamp, btc price strength consolidated again, still up 4% from the week’s low at the time of writing.
Analyzing the situation on low timeframes (LTF), popular trader Skew said the upside came from derivatives markets, with spot traders selling at highs.
“LTF stuff, but pretty clear spot absorption around the high, so $27,200 is an important price area to clear for spot buyers,” he said. explained in X.
“Most of the momentum was driven by the crook with the spot price (short liquidations and strong crook bidding).”
subsequently bias noted That $27,200 was still a rejection point that day, before Wall Street opened. He added that, heading into next week, the market was “likely to hunt both sides of the book.”
$btc
OI bleeds a bit, but market likely to look for both sides of the book next weekNote the spot delta: big buyer pic.twitter.com/41dlMMG9CQ
— Skew Δ (@52kskew) September 29, 2023
Monitoring resource data glass coin Meanwhile, it revealed the extent of the reduction in short positions, with liquidations reaching $22 million on September 28, the largest single-day figure in ten days.
bitcoin Monthly Close May Be ‘Incredibly Bullish’
Next, the popular pseudonymous trader and analyst known as Mustache on social media noted a key support recovery in the making.
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He argued that, coming in the form of a 20-month simple moving average (SMA), this could have longer-term consequences beyond btc‘s intraday price trend.
“$btc is again ABOVE the SMA 20 line. The monthly close is tomorrow,” part of his last comment. read.
“If bitcoin closes above this line, August can be considered a fraud. “That would be incredibly optimistic.”
Mustache referenced bitcoin‘s brief rise above $28,000 at the August monthly close. He added that historically, the 20-month SMA marked definitive support after rallies, which held until btc/USD hit a new all-time high.
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