Bitcoin liquidates $23 million in short positions as BTC reaches a new high for September.

Bitcoin (BTC) maintained its volatility into the Wall Street opening on September 8, as a typical “short squeeze” led to new highs for the month.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin makes a round trip to $24,400

Data from Cointelegraph Markets Pro and TradingView indicated that BTC price fluctuations resulted in the liquidation of both short and long positions.

The day before, Bitcoin experienced upward momentum, reaching above $26,400 following the daily close.

However, a subsequent decline brought BTC/USD back below the $26,000 threshold at the time of this report.

Welp — lets take out the lows again then eh? pic.twitter.com/EVeXRnuwJ6

— Jelle (@CryptoJelleNL) September 8, 2023

This resulted in losses for late traders attempting to follow the market’s ups and downs. According to data from the monitoring platform CoinGlass, short liquidations amounted to $23.5 million on September 7, while the total for long positions on September 8 remains unknown.

BTC/USD liquidations chart (screenshot). Source: CoinGlass

“Shorts got hunted as anticipated,” noted popular trader Skew in part of his overnight market analysis on X (formerly Twitter).

$BTC Binance & Bybit Open Interest
Shorts got hunted as expected
note the OI added here with small price reaction and decreasing perp bid delta, this implies more shorts scaling into price on this second drive higher https://t.co/OULNlQrQof pic.twitter.com/X1hNlvjbdc

— Skew Δ (@52kskew) September 7, 2023

Another trader, Daan Crypto Trades, emphasized the importance of regaining lost ground from August.

“Bitcoin was finally able to surpass the September monthly open after multiple attempts. It is now retesting that level,” he informed his X followers on that day.

“The question is, will it provide as much support as it did resistance? It is up to the bulls to try and maintain a ‘green’ September.”

Data from CoinGlass indicates that September typically results in a BTC price decline of nearly 10%, with market expectations adjusted accordingly for 2023.

BTC/USD monthly returns chart (screenshot). Source: CoinGlass

Analyst: BTC price establishing “final correction”

Continuing, trader Crypto Tony downplayed the strength of the overnight movement, stating that $26,600 was the critical level to surpass.

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“There was a nice rally from the $25,600 range low, but no follow-through to the range highs, so we find ourselves stuck in the mid-range again,” he clarified alongside a supporting chart.

“No entry for me on Bitcoin unless we clear $26,600.”

BTC/USD annotated chart. Source: Crypto Tony/X

After returning to familiar levels from the first week of September, BTC/USD continued to hold above the 200-day exponential moving average (EMA), currently positioned at $25,674.

Commenting on Bitcoin’s interaction with the 200-week EMA in past cycles, Michaël van de Poppe, founder and CEO of trading firm Eight, suggested that the market is undergoing the “final” BTC price decline this time.

“From a technical perspective, we can focus solely on the price action in 2019, but that does not provide a clear case. The situation in 2015 (considering the new participants entering this cycle -> institutions) allows us to draw parallels with that cycle,” part of his commentary stated.

“In that regard, this is the final correction.”

There's a level which #Bitcoin must hold in order to avoid a significant crash.
Bitcoin is currently holding onto a significant level of support. It's around the $25,500 barrier.
In the meantime, we're facing a month of destruction. September. What's next for Bitcoin? … pic.twitter.com/nNI8GmxKuN

— Michaël van de Poppe (@CryptoMichNL) September 7, 2023

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.