On September 29, Bitcoin (BTC) experienced price fluctuations, bouncing around the $27,000 level as it attempted to challenge the month’s highest levels. Despite a short squeeze pushing it above $27,000, Bitcoin bulls failed to establish a new monthly peak.
Bitcoin reached a high of $27,300 on Bitstamp before consolidating, remaining up 4% compared to the week’s low at the time of writing. Short-term analysis by traders suggested that the upside move was driven by derivatives markets, with spot traders selling at the highs. Some key price areas to watch were pointed out, particularly the $27,200 level.
Bitcoin’s price action on September 29 was characterized by a short squeeze and liquidations of short positions, with over $22 million in liquidations on that day, marking the largest single-day tally in ten days.
Bitcoin’s Price Action and Short Squeeze
One pseudonymous trader and analyst noted that Bitcoin was back above the 20-month simple moving average (SMA), and the monthly close was approaching. Historically, the 20-month SMA has served as crucial support after being reclaimed, often holding until Bitcoin reaches a new all-time high.
It’s important to note that cryptocurrency investments involve risk, and individuals should conduct their own research before making investment decisions.