Bitcoin price must take $26K, says trader after 'textbook short squeeze'

Bitcoin (BTC) rebounded disconnected three-month lows connected Sep. 12 arsenic traders voiced suspicion implicit BTC terms behavior.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin shorts consciousness vigor arsenic BTC terms adds $1,000

Data from Cointelegraph Markets Pro and TradingView followed a drawback instrumentality to levels seen aft the play adjacent connected BTC/USD.

Bitcoin had seen immediate weakness connected the erstwhile day’s Wall Street open, concisely dipping beneath $25,000 to headdress its worst show since mid-June.

The consequent comeback took the largest cryptocurrency $1,000 higher, but astatine the clip of writing, $26,000 inactive acted arsenic resistance.

Ahead of time, on-chain monitoring assets Material Indicators warned that BTC terms would soon look a “support test” acknowledgment to bid liquidity further down the bid publication being removed.

#FireCharts shows 2 ample #BTC Buy Walls person been rugged. Support trial is inbound. pic.twitter.com/QnKIEoAnEc

— Material Indicators (@MI_Algos) September 11, 2023

In further preemptive analysis, Material Indicators and others noted that erstwhile enactment “rug pulls” had yet produced Bitcoin marketplace upside instead, with large-volume traders clearing liquidity from instantly astir spot price.

Continuing, co-founder Keith Alan predicted that $24,750 would clasp arsenic enactment connected the down move, thing which astatine the clip of penning holds true.

After the recovery, which helium called a “textbook abbreviated squeeze,” fashionable trader Skew was among those calling for bulls to flooded $26,000 resistance.

— Skew Δ (@52kskew) September 12, 2023

“$25.6K - $25.3K inactive important for operation & confirmation of buyers,” portion of further commentary stated.

Data from monitoring assets CoinGlass showed full BTC abbreviated liquidations astatine conscionable implicit $12 cardinal for Sep. 12 truthful far, portion $71 cardinal successful BTC longs suffered the time prior.

BTC liquidations illustration (screenshot). Source: CoinGlass

Bitcoin price: "Next impulse" incoming?

Optimistic arsenic ever, meanwhile, chap fashionable trader Credible Crypto eyed a Bitcoin marketplace headdress dominance breakout arsenic a imaginable precursor to the adjacent bullish BTC terms move.

Related: Double apical ‘likely’ confirmed — 5 things to cognize successful Bitcoin this week

In fresh X analysis connected Sep. 12, helium flagged a section dominance downtrend being tested — thing which past occurred successful mid-June and sparked implicit $7,000 successful gains implicit 2 weeks.

“Five days aft BTC dominance broke its section downtrend, terms followed suit with the adjacent impulsive limb which was a $7,000 move,” portion of accompanying comments read.

“With bullish marketplace operation intact connected BTC, 24.8k held, and BTC dominance breaking out, I deliberation determination is simply a decent statement to beryllium made that our adjacent impulse is conscionable astir the corner.”

Bitcoin dominance vs. BTC/USD annotated chart. Source: Credible Crypto/X

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