Bitcoin shorts continue to burn as BTC price seeks to hold $27k.
Bitcoin (BTC) rose to $27,000 on September 29, challenging a month-to-day high that sent BTC price action to the upside.
BTC price maintains overnight strength.
Data from Cointelegraph Markets Pro and TradingView showed the cryptocurrency's biggest test as it tried to hold profits after a familiar “short squeeze.”
The previous day featured a trip past the $27,000 mark, with Bitcoin bulls failing to post a new high for September.
Topping out at $27,300 on Bitstamp, BTC's price strength has strengthened, still up 4%, the week's low at the time of writing.
Analyzing the situation on lower time frames (LTFs), the popular Trader Skew bullishness comes in the derivatives markets, where spot traders sell high.
“LTF stuff but a pretty clear spot to absorb the high area so $27.2K is an important price point for spot buyers to clear,” X (formerly Twitter) explained.
“Most of the push per capita is driven by spot pricing (short liquidity and strong bids).”
Skew then revealed that $27,200 had been rejected on the day before Wall Street opened. Going into next week, the market is likely to “hunt both sides of the book,” he added.
$BTC OI bleeding a bit but market can hunt both sides of the ledger next week.
Notice the spot delta – big buyer pic.twitter.com/41dlMMG9CQ
— Skew Δ (@52kskew) September 29, 2023
Meanwhile, data from tracking resource CoinGlass showed the extent of the shorts' squeeze, with liquidity reaching $22 million on September 28 — the largest one-day total in ten days.
The monthly closing of Bitcoin can be “surprisingly”.
Next, a popular fake trader and analyst known as Beard on social media was seen as a key supporter in the process.
Related: ‘Efficiency' Bitcoin Halves to $30K to Raise BTC Mining Costs
Coming in the form of a 20-month simple moving average (SMA), this has been argued to have long-term ramifications beyond the internal BTC price trend.
«$BTC has bounced back above the SMA 20 line. Monthly Intimacy is tomorrow,” read part of his recent commentary.
“If Bitcoin closes above this line, August could be considered a false breakout. This is going to be incredibly brutal.
Beard cited Bitcoin's brief rally above $28,000 at the August monthly close. It added firm support after a retracement of the historical 20-month SMA, leading BTC/USD to new all-time highs.
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