On September 29, Bitcoin (BTC) was seen trading around $27,000 as it attempted to reach its month-to-date highs, pushing the crypto market cap higher.
BTC price sustains overnight gains
Cointelegraph Markets Pro and TradingView data showed that the biggest crypto was striving to keep its increase after a classic “short squeeze.”
The day before had seen it surpass the $27,000 mark, with Bitcoin bulls unable to secure a fresh high for September.
It had reached a maximum of $27,300 on Bitstamp, with BTC price power returning to balance, still up 4% in comparison to the week’s low at the time of writing.
Exploring the situation on low timeframes (LTFs), popular crypto trader Skew commented that the upside had been caused by 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 said on X (formerly Twitter).
Skew then noted that $27,200 had stayed a rejection point on the day, prior to the Wall Street open. Going into the next week, he added, the market was “likely to hunt both sides of the book.”
At the same time, data from monitoring resource CoinGlass showed the extent of shorts being squeezed, with liquidations reaching $22 million on Sept. 28 — the largest single-day total in ten days.
Bitcoin monthly close may be “incredibly bullish”
Continuing, the popular pseudonymous trader and analyst Moustache on social media noticed a key support reclaim in the making.
It is the 20-month simple moving average (SMA) that could have long-term implications beyond the intraday crypto breaking news on Twitter.
“$BTC is back ABOVE the SMA 20 line. Monthly close is tomorrow,” Moustache tweeted about Bitcoin’s brief spurt past $28,000 into the August monthly close.
He also pointed out that historically, the 20-month SMA marked definitive support after reclaims, which held until BTC/USD made a new all-time high.
Subscribe to our email newsletter to get the latest posts delivered right to your email.
Comments