Bitcoin liquidates $23M in shorts as BTC price tags new September high

Bitcoin speculators get burned as BTC price action delivers an overnight spike, only to reverse direction and give back all its gains.

Bitcoin (BTC) extended volatility into the Sep. 8 Wall Street open as a classic “short squeeze” sparked new September highs.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin offers a round trip to $24,400

Data from Cointelegraph Markets Pro and TradingView showed BTC price movements liquidating shorts and longs alike.

Bitcoin had seen upside momentum the day prior, this culminating in a trip above $26,400 after the daily close.

A subsequent comedown nonetheless took BTC/USD full circle, and the pair was back under the $26,000 mark at the time of writing.

The result was punishment for late traders chasing the market up and down. According to data from monitoring resource CoinGlass, short liquidations totaled $23.5 million for Sep. 7, with the Sep. 8 long tally not yet known.

BTC/USD liquidations chart (screenshot). Source: CoinGlass

“Shorts got hunted as expected,” popular trader Skew wrote in part of overnight market coverage on X (formerly Twitter).

Fellow trader Daan Crypto Trades drew attention to the significance of reclaiming lost ground from August.

“Bitcoin Was finally able to break above the September monthly open after testing it numerous times. It is now retesting it,” he told X subscribers on the day.

“The question is, will it provide as much support as it did resistance? Up to the bulls to try and maintain a ‘green’ September.”

CoinGlass data confirms that September tends to produce BTC price downside of close to 10%, with market expectations skewed appropriately for 2023.

BTC/USD monthly returns chart (screenshot). Source: CoinGlass

Analyst: BTC price cementing “final correction”

Continuing, trader Crypto Tony dismissed the strength of the overnight move, advising that $26,600 was the line in the sand to cross.

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“Nice rally off the $25,600 range low, but no follow through up to the range highs, so again we are stuck mid range,” he explained alongside an explanatory chart.

“No entry for me on Bitcoin unless we clear $26,600.”

BTC/USD annotated chart. Source: Crypto Tony/X

After returning to familiar territory from the first week of September, BTC/USD nonetheless continued to preserve the 200-day exponential moving average (EMA), currently at $25,674.

Commenting on Bitcoin’s interaction with the 200-week EMA in previous cycles, Michaël van de Poppe, founder and CEO of trading firm Eight, ventured that the market was in the midst of the “final” BTC price drop this time around.

“Technically speaking, we can solely focus on the price action in 2019, but that doesn’t grant a clear case. The case in 2015 (given the new participants joining this cycle into the markets -> institutions), we can correlate the current market with that cycle,” part of commentary stated.

“In that regard, this is the final correction.”

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.

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