After investors expressed doubts about the price behavior of BTC, Bitcoin began to recover from its lowest level in three months on September 12th. A rapid recovery is observed in the BTC/USD pair following a sudden drop in Bitcoin’s price. Especially after weak performance at the opening of Wall Street, Bitcoin dropped below $25,000 but quickly rose above $26,000.
Bitcoin Short Positions Decrease
Data obtained from TradingView shows a quick turnaround in the BTC/USD pair after the weekly close. Bitcoin experienced a sudden weakness at the opening of Wall Street the previous day and briefly dropped below $25,000, showing its worst performance since mid-June.
The subsequent recovery pushed the largest cryptocurrency up by another $1,000, and at the time of writing this article, the Bitcoin price was moving above $26,000. Prior to this movement, on-chain monitoring source Material Indicators had warned that the BTC price would soon face a support test due to the removal of bid liquidity below the BTC order book.
Material Indicators and other data indicate that previous support “rug-pull” operations have ultimately pushed the Bitcoin market upwards by clearing liquidity around the spot price, according to co-founder Keith Alan. Alan predicted that $24,750 would remain as support in the downward movement, a prediction that still holds true.
Popular investor Skew, who called the recovery a “textbook short squeeze,” was among those calling for bulls to break the $26,000 resistance. Skew continued:
“The levels of $25,600 and $25,300 are still important for structure and confirmation by buyers.”
Data from monitoring source CoinGlass shows that total BTC short liquidations exceeded $12 million until September 12th, while a $71 million BTC long position liquidation occurred the previous day.
Is a Bitcoin Price Increase Coming?
Meanwhile, popular investor Credible Crypto, who is usually optimistic, saw a break in Bitcoin market dominance as a potential precursor to the next upward BTC price movement. In a new analysis on September 12th, Credible Crypto noted that a downward trend that occurred in mid-June and resulted in a gain of over $7,000 within two weeks was being tested:
“Five days after breaking the downward trend of BTC dominance, the price followed the same pattern with the next impulsive leg being a $7,000 move. With the bullish market structure in BTC remaining intact and the break of BTC dominance, I think there is a strong argument that our next impulse is just around the corner.”
