The cryptocurrency markets continue to prove their inherent volatility, as Bitcoin liquidated $23M in shorts, driving the BTC price to a new high for September. This rapid price action overnight caused a sharp spike, only to reverse direction shortly after, eliminating all of its gains.
The fickle behavior of BTC showed a constant momentum the day prior, culminating in a mark above $26,400 after the daily close. This seemingly upward trajectory, however, fell swiftly, taking BTC/USD full circle and left us beneath the $26,000 mark.
This sudden drop was a harsh lesson for late traders attempting to ride the wave of the market’s highs and lows. Short liquidations accounted for a staggering $23.5 million for September 7, according to data from monitoring resource CoinGlass. The amount of long tally for September 8 remains unknown at the time of writing.
Amidst this sporadic market coverage, traders projected their views on the importance of Bitcoin reclaiming its lost territory from August. They asserted that Bitcoin finally managed to break the mould of the September monthly open after numerous tests. Yet, as BTC is now retesting it, the question hangs whether it will provide as much support as it did resistance.
Viewers must not be swayed solely by current market expectations, which predict an approximate 10% decline in BTC prices in the month of September. One particular trader was undeterred by the overnight price surge, suggesting that a clear line in the sand for Bitcoin would be to cross the $26,600 mark, going so far as to refuse entry on Bitcoin unless it clears this threshold.
Nonetheless, despite returning to familiar territory from the first week of September, BTC/USD continues to maintain the 200-day exponential moving average (EMA), sitting currently at $25,674.
As BTC interacts with the 200-week EMA in previous cycles, assertions were made that the market seems to be in the midst of the “final” BTC price drop. Observers have been directed to focus on the price action in 2019, suggesting that the present market is in correlation with that cycle. Traders asserted this as an indication of the final correction in prices.
This sudden stir in the cryptocurrency market reflects the inherent risk of trading and investment moves. It’s imperative that readers conduct their own comprehensive research before making any decision.
Source: Cointelegraph
