Are Bitcoin Shorts Feeling the Heat Amidst a $1,000 Price Rally?
On September 12, #bitcoin experienced a relief rally, gaining $1,000 in price after hitting a three-month low.
However, it faced #resistance at $26,000. Analysts predicted that Bitcoin's price would undergo a "support test" due to decreased bid liquidity.
Despite earlier support concerns, it held at $24,750 during the downturn. This rally led to a short squeeze, with some traders calling for a breakthrough of the $26,000 resistance.
On that day, over $12 million in BTC short positions were liquidated, while $71 million in #long positions had been liquidated the day before.
Some traders remained optimistic, suggesting that a Bitcoin market cap dominance breakout could signal the next bullish move, citing a previous instance where this led to a $7,000 price increase in two weeks.
