Bitcoin Price Drops to 2-week Low in Challenging September
Bitcoin encountered a challenging start to September with a price decrease to a two-week low, dropping over 2% to $57,273, according to data from CoinMarketCap. The decline occurred over the weekend, a period known for lower market liquidity that hinders buyers from halting further declines.
August saw Bitcoin closing with an 8.6% decrease, a disappointing performance compared to its usual monthly gain of 1.75% as per CoinGlass data. Historically, September has not been favorable for Bitcoin, experiencing an average loss of 4.5% over the years.
The CoinGlass liquidation heatmap displayed a bearish scenario, indicating potential short liquidations up to $64,000. This data signifies traders holding short positions in the futures market, reflecting the prevailing bearish sentiment. However, a price increase could trigger a short squeeze.
Trader exitpump noted “aggressive” short selling at the day’s lows, with the impending weekly close. Analyst Rekt Capital highlighted that Bitcoin is consistently testing the lower boundary of a crucial channel on the weekly chart. Rekt Capital emphasized the significance of Bitcoin closing above $58,450 to confirm the channel’s base as support, crucial for the cryptocurrency’s short-term trajectory.
Trader CrypNuevo expressed a preference for long positions, anticipating a downward movement to trigger liquidations around $56,600, where a long order would be placed. CrypNuevo also identified $61,300 as a potential target for an upward liquidity grab, suggesting significant price fluctuations in the near future. As September progresses, Bitcoin confronts the challenge of overcoming its historical weakness during this month.
