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On September 29, Bitcoin (BTC) fluctuated around $27,000 as a challenge to the monthly highs propelled BTC price movements upward.
BTC/USD 1-hour chart. Source: TradingView
BTC price retains overnight momentum
Data from Cointelegraph Markets Pro and TradingView indicated that the leading cryptocurrency was striving to maintain its gains following a typical “short squeeze.”
The previous day saw Bitcoin surpass the $27,000 threshold, although bulls were unable to establish a new high for September.
Peaking at $27,300 on Bitstamp, BTC’s price strength returned to a consolidation phase, still reflecting a 4% increase compared to the week’s low at the time of this report.
Examining the situation on lower timeframes (LTFs), well-known trader Skew noted that the upward movement was driven by derivatives markets, with spot traders selling at the peaks.
“LTF analysis shows clear spot absorption around the high, making $27.2K a crucial price level for spot buyers to surpass,” he stated on X (formerly Twitter).
“The majority of the upward movement was driven by perpetual contracts, with spot trailing the price (short liquidations & strong perpetual bids).”
BTC/USD order book data annotated chart. Source: Skew/X
Skew later pointed out that $27,200 remained a rejection level for the day, prior to the opening of Wall Street. Looking ahead to the following week, he mentioned that the market was “likely to explore both sides of the book.”
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$BTC
Open interest is slightly decreasing, but the market is likely to explore both sides of the book into next week
Note the spot delta – significant buyer pic.twitter.com/41dlMMG9CQ— Skew Δ (@52kskew) September 29, 2023
In the meantime, data from the monitoring platform CoinGlass highlighted the scale of short positions being liquidated, with liquidations reaching $22 million on September 28 — the highest single-day total in ten days.
BTC liquidations chart (screenshot). Source: CoinGlass
Bitcoin monthly close could be “extremely bullish”
Continuing, the well-known pseudonymous trader and analyst known as Moustache on social media observed a significant support reclaim in progress.
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This support, represented by the 20-month simple moving average (SMA), could have long-term implications beyond the daily BTC price fluctuations, he argued.
“$BTC is back ABOVE the SMA 20 line. The monthly close is tomorrow,” part of his latest commentary stated.
“If Bitcoin closes above this line, August can be viewed as a fakeout. That would be extremely bullish.”
BTC/USD annotated chart. Source: Moustache/X
Moustache referred to Bitcoin’s brief surge past $28,000 during the August monthly close. He noted that historically, the 20-month SMA has indicated significant support after reclaims, which persisted until BTC/USD achieved a new all-time high.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making a choice.
