{"id":22255,"date":"2023-09-12T07:15:46","date_gmt":"2023-09-12T07:15:46","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-price-must-take-26k-trader-says-after-textbook-short-squeeze\/"},"modified":"2023-09-12T07:15:49","modified_gmt":"2023-09-12T07:15:49","slug":"bitcoin-price-must-take-26k-trader-says-after-textbook-short-squeeze","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-price-must-take-26k-trader-says-after-textbook-short-squeeze\/","title":{"rendered":"Bitcoin price must take $26K, trader says after \u2018textbook short squeeze\u2019"},"content":{"rendered":"
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Bitcoin (BTC) rebounded off three-month lows on Sept. 12 as traders voiced suspicion over BTC price behavior.<\/p>\n

BTC\/USD 1-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Bitcoin shorts feel heat as BTC price adds $1,000<\/h2>\n

Data from Cointelegraph Markets Pro and TradingView followed a snap return to levels seen after the weekly close on BTC\/USD.<\/p>\n

Bitcoin had seen immediate weakness on the previous day\u2019s Wall Street open, briefly dipping below $25,000 to cap its worst performance since mid-June.<\/p>\n

The subsequent comeback took the largest cryptocurrency $1,000 higher, but at the time of writing, $26,000 still acted as resistance.<\/p>\n

Ahead of time, on-chain monitoring resource Material Indicators warned that BTC price would soon face a \u201csupport test\u201d thanks to bid liquidity further down the order book being removed.<\/p>\n

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#FireCharts<\/a> shows 2 large #BTC<\/a> Buy Walls have been rugged. Support test is inbound. pic.twitter.com\/QnKIEoAnEc<\/a><\/p>\n

\u2014 Material Indicators (@MI_Algos) September 11, 2023<\/a><\/p><\/blockquote>\n

In further preemptive analysis<\/a>, Material Indicators and others noted that previous support \u201crug pulls\u201d had ultimately produced Bitcoin market upside instead, with large-volume traders clearing liquidity from immediately around spot price.<\/p>\n

Continuing<\/a>, co-founder Keith Alan predicted that $24,750 would hold as support on the down move, something which at the time of writing holds true.<\/p>\n

After the recovery, which he called<\/a> a \u201ctextbook short squeeze,\u201d popular trader Skew was among those calling for bulls to overcome $26,000 resistance.<\/p>\n

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$BTC<\/a> CVDs & Price
Very clean perp CVD divergence with sellers failing to break below $25K <\/p>\n

Setup criteria
> high short float in OI & negative funding
> Price reclaiming price level \/ failing to sustain LTF trend lower (Looks like SFP below initial low)
> Perp CVD divergence\u2026 pic.twitter.com\/rsRLzAUbkE<\/a><\/p>\n

\u2014 Skew \u0394 (@52kskew) September 12, 2023<\/a><\/p><\/blockquote>\n

\u201c$25.6K – $25.3K still important for structure & confirmation of buyers,\u201d Skew\u00a0added<\/a>.<\/p>\n

Data from monitoring resource CoinGlass showed total BTC short liquidations at just over $12 million for Sept. 12 so far, while $71 million in BTC longs suffered the day prior.<\/p>\n

BTC liquidations chart (screenshot). Source: CoinGlass<\/em><\/figcaption><\/figure>\n

Bitcoin price: “Next impulse” incoming?<\/h2>\n

Optimistic as ever, meanwhile, fellow popular trader Credible Crypto eyed a Bitcoin market cap dominance breakout as a potential precursor to the next bullish BTC price move.<\/p>\n

Related:\u00a0Double top \u2018likely\u2019 confirmed \u2014 5 things to know in Bitcoin this week<\/em><\/strong><\/p>\n

In fresh X analysis<\/a> on Sept. 12, he flagged a local dominance downtrend being tested \u2014 something which last occurred in mid-June and sparked over $7,000 in gains over two weeks.<\/p>\n

\u201cFive days after BTC dominance broke its local downtrend, price followed suit with the next impulsive leg which was a $7,000 move,\u201d part of accompanying comments read.<\/p>\n

\u201cWith 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.\u201d<\/p><\/blockquote>\n

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Bitcoin dominance vs. BTC\/USD annotated chart. Source: Credible Crypto\/X<\/em><\/figcaption><\/figure>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n