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

” Bitcoin Was lastly able to break above the September regular monthly open after testing it many times. Source: Crypto Tony/XAfter returning to familiar territory from the very first week of September, BTC/USD nonetheless continued to protect the 200-day rapid moving average (EMA), presently at $25,674. … pic.twitter.com/nNI8GmxKuN— Michaël van de Poppe (@CryptoMichNL) September 7, 2023.

Bitcoin (BTC) extended volatility into the Sept. 8 Wall Street open as a traditional “short capture” stimulated new September highs.BTC/ USD 1-hour chart.” Bitcoin Was lastly able to break above the September monthly open after evaluating it numerous times. Up to the bulls to try and keep a green September. Source: Crypto Tony/XAfter returning to familiar area from the very first week of September, BTC/USD however continued to preserve the 200-day exponential moving average (EMA), currently at $25,674. … pic.twitter.com/nNI8GmxKuN— Michaël van de Poppe (@CryptoMichNL) September 7, 2023.

According to data from keeping track of resource CoinGlass, short liquidations totaled $23.5 million for Sept. 7, with the Sept. 8 long tally not yet known.BTC/ USD liquidations chart (screenshot). Source: CoinGlass” Shorts got hunted as expected,” popular trader Skew composed in part of overnight market coverage on X (previously Twitter).

This article does not include investment advice or recommendations. Every investment and trading relocation involves danger, and readers should conduct their own research study when making a decision.

Bitcoin (BTC) extended volatility into the Sept. 8 Wall Street open as a classic “brief squeeze” sparked new September highs.BTC/ USD 1-hour chart. Source: TradingViewBitcoin offers a big salami to $24,400 Data from Cointelegraph Markets Pro and TradingView revealed BTC cost movements liquidating shorts and longs alike.Bitcoin had seen upside momentum the day prior, culminating in a trip above $26,400 after the daily close.A subsequent comedown nonetheless took BTC/USD cycle, and the set was back under the $26,000 mark at the time of writing.Welp– lets take out the lows again then eh? pic.twitter.com/EVeXRnuwJ6— Jelle (@CryptoJelleNL) September 8, 2023

Other Questions People Ask

What caused Bitcoin to liquidate $23M in shorts as BTC price tags new September high?

The liquidation of $23 million in shorts occurred as Bitcoin experienced a classic "short squeeze," which is a rapid price increase that forces short sellers to close their positions. This event was triggered by Bitcoin breaking above the September monthly open after multiple attempts, leading to increased buying pressure. As a result, many traders who had bet against Bitcoin were forced to cover their shorts, contributing to the upward price momentum.

How did Bitcoin's price movement impact short liquidations on September 7?

On September 7, Bitcoin's price movement led to significant short liquidations totaling approximately $23.5 million, as reported by CoinGlass. The volatility in BTC/USD was marked by a surge above $26,400, which prompted many short sellers to exit their positions quickly. This dynamic illustrates how sudden price increases can create a cascading effect, resulting in further upward momentum for Bitcoin.

What does the recent volatility in Bitcoin indicate for traders?

The recent volatility in Bitcoin, particularly the liquidation of shorts and the rise to new September highs, suggests a highly reactive market environment. Traders should be cautious and aware that such rapid price movements can lead to both opportunities and risks. Monitoring key support levels, like the 200-day EMA at $25,674, can help traders make informed decisions in this unpredictable landscape.

What role did the 200-day EMA play in Bitcoin's recent price action?

The 200-day exponential moving average (EMA) has been a critical support level for Bitcoin during its recent price action. As Bitcoin maintained its position above this EMA at $25,674, it provided a foundation for the bullish momentum that led to the new September highs. Traders often use the EMA as a signal for potential trend reversals or continuations, making it an essential indicator in this volatile market.

What should investors consider after Bitcoin's recent price surge?

After Bitcoin's recent price surge and the liquidation of $23 million in shorts, investors should consider the potential for continued volatility. It's crucial to conduct thorough research and stay updated on market trends, as rapid price changes can lead to both gains and losses. Additionally, understanding market sentiment and technical indicators will be vital for making informed trading decisions in the coming days.