Bitcoin (BTC) experienced a notable decline of over 2% on September 1, with its price falling to $57,273, as reported. This downturn occurred over the weekend when market liquidity is typically lower, complicating efforts by buyers to stem further losses.
For August, Bitcoin closed with an 8.6% drop, a stark contrast to its average monthly gain of 1.75% as per CoinGlass data. Historically, September has been a challenging month for Bitcoin, with an average loss of 4.5% over the years.
The CoinGlass liquidation heatmap indicated a bearish trend, showing potential short liquidations up to $64,000. This data reflects the prevailing negative sentiment among traders in the futures market, although a price increase could potentially trigger a short squeeze.
Trader exitpump noted “aggressive” short selling at the day’s lows as the weekly close approached. Analyst Rekt Capital emphasized that Bitcoin is testing the bottom of a crucial channel on the weekly chart. “Bitcoin needs to close the week above $58,450 to confirm the channel bottom as support,” Rekt Capital stated, underscoring the significance of this level for the cryptocurrency’s short-term outlook.
Trader CrypNuevo expressed a preference for long positions, anticipating a downward move to trigger liquidations around $56,600, where he plans to place a long order. He also identified $61,300 as a potential target for an upside liquidity grab, suggesting that significant price fluctuations could occur in the near term. As September progresses, Bitcoin must navigate its historically weak performance during this month.
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