Bitcoin's upward momentum caused a short squeeze, leading to a new September high of over $26,400 before returning to under $26,000 in an overnight spike. Consequently, the BTC market liquidated shorts and longs, with data from Cointelegraph Markets Pro and TradingView showing that shorts liquidations stood at $23.5 million on Sept. 7. Short-term traders' attempts to follow the volatile market up and down caused this loss. As Bitcoin continues to maintain the 200-day exponential moving average of $25,674, the crypto market will see the final correction.
CoinGlass data confirms that September usually results in a 10% drop in Bitcoin's price, with expectations for 2023 in line with this trend. With Bitcoin rallying from its Aug. low of about $25.6K, the token is now retesting September's monthly open, as noted by Daan Crypto Trades. The trader highlighted the importance of Bitcoin reclaiming lost ground from August and bulls prudently maintaining a “green” September.
Accordingly, after reaching an overnight high of over $26,400, Bitcoin's price has reversed direction and is giving back its gains, prompting short and long liquidations alike.
