Bitcoin price must take $26K, trader says after ‘textbook short squeeze’


Bitcoin (BTC) rebounded off three-month lows on Sept. 12 as merchants voiced suspicion over BTC price conduct.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin shorts really feel warmth as BTC price provides $1,000

Data from Cointelegraph Markets Pro and TradingView adopted a snap return to ranges seen after the weekly shut on BTC/USD.

Bitcoin had seen immediate weakness on the day past’s Wall Street open, briefly dipping below $25,000 to cap its worst efficiency since mid-June.

The subsequent comeback took the biggest cryptocurrency $1,000 greater, however on the time of writing, $26,000 nonetheless acted as resistance.

Ahead of time, on-chain monitoring useful resource Material Indicators warned that BTC price would quickly face a “support test” because of bid liquidity additional down the order e book being eliminated.

In further preemptive analysis, Material Indicators and others famous that earlier help “rug pulls” had in the end produced Bitcoin market upside as a substitute, with large-volume merchants clearing liquidity from instantly round spot price.

Continuing, co-founder Keith Alan predicted that $24,750 would maintain as help on the down transfer, one thing which on the time of writing holds true.

After the restoration, which he called a “textbook short squeeze,” widespread trader Skew was amongst these calling for bulls to beat $26,000 resistance.

“$25.6K – $25.3K still important for structure & confirmation of buyers,” Skew added.

Data from monitoring useful resource CoinGlass confirmed complete BTC short liquidations at simply over $12 million for Sept. 12 to this point, whereas $71 million in BTC longs suffered the day prior.

BTC liquidations chart (screenshot). Source: CoinGlass

Bitcoin price: “Next impulse” incoming?

Optimistic as ever, in the meantime, fellow widespread trader Credible Crypto eyed a Bitcoin market cap dominance breakout as a possible precursor to the subsequent bullish BTC price transfer.

Related: Double top ‘likely’ confirmed — 5 things to know in Bitcoin this week

In fresh X analysis on Sept. 12, he flagged a neighborhood dominance downtrend being examined — one thing which final occurred in mid-June and sparked over $7,000 in features over two weeks.

“Five days after BTC dominance broke its local downtrend, price followed suit with the next impulsive leg which was a $7,000 move,” a part of accompanying feedback learn.

“With 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.”

Bitcoin dominance vs. BTC/USD annotated chart. Source: Credible Crypto/X

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