Bitcoin price must take $26K, trader says after ‘textbook short squeeze’
Bitcoin (BTC) rebounded off three-month lows on Sept. 12 as traders voiced suspicion over BTC price behavior.
Data from Cointelegraph Markets Pro and TradingView followed a snap return to levels seen after the weekly close on BTC/USD.
Bitcoin had seen immediate weakness on the previous day’s Wall Street open, briefly dipping below $25,000 to cap its worst performance since mid-June.
The subsequent comeback took the largest cryptocurrency $1,000 higher, but at the time of writing, $26,000 still acted as resistance.
Ahead of time, on-chain monitoring resource Material Indicators warned that BTC price would soon face a “support test” thanks to bid liquidity further down the order book being removed.
#FireCharts shows 2 large #BTC Buy Walls have been rugged. Support test is inbound. pic.twitter.com/QnKIEoAnEc
In further preemptive analysis, Material Indicators and others noted that previous support “rug pulls” had ultimately produced Bitcoin market upside instead, with large-volume traders clearing liquidity from immediately around spot price.
Continuing, co-founder Keith Alan predicted that $24,750 would hold as support on the down move, something which at the time of writing holds true.
After the recovery, which he called a “textbook short squeeze,” popular trader Skew was among those calling for bulls to overcome $26,000 resistance.
$BTC CVDs & Price
Very clean perp CVD divergence with sellers failing to break below $25K
Setup criteria
> high short float in OI & negative funding
> Price reclaiming price level / failing to sustain LTF trend lower (Looks like SFP below initial low)
> Perp CVD divergence… pic.twitter.com/rsRLzAUbkE
“$25.6K - $25.3K still important for structure & confirmation of buyers,” Skew added.
Data from monitoring
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