Bitcoin (BTC) fell more than 2% on September 1, as the monthly close turned “over-the-counter” and unfavorable for the bulls.
BTC/USD 1-hour chart. Source: TradingView
BTC prices traditionally show a downward trend in September, when they are “red”.
According to data from Cointelegraph Markets Pro and TradingView, the BTC price weakness has pushed the price down to $57,230 on Bitstamp, the most recent level since August 16.
The monthly close was dismal as liquidity conditions tightened mid-week, leaving buyers unable to hedge further losses later.
According to data from monitoring resource CoinGlass, Bitcoin lost 8.6% in August, compared to its average gain of 1.75%. The figure also shows that September was a historically bad month for BTC/USD, with an average loss of 4.5%.
BTC/USD monthly returns (screenshot). Source: CoinGlass
Popular trader Crypto Chase wrote in part of a post about short-term market activity that “local levels are taking a beating and could eventually break down.”
“Bulls would like to see 55.5-56.5K hold or become a decisive PA above 61K~. Losing 55K would most likely mean 51K~.”
BTC/USDT per chart. Source: Crypto Chase/X
Fellow trader Exitpump noted that the weekly close is now just hours away and there has been “aggressive” short selling at the local lows for the day.
Binance BTC/USDT futures market data. Source: Exitpump/X
“Bitcoin continues to retest the channel bottom,” added Rekt Capital, a trader and analyst, while analyzing the weekly chart.
“Bitcoin needs a weekly close above $58,450 to confirm the channel bottom (black) as support. Retest is still ongoing.”
BTC/USD 1-week chart. Source: Rekt Capital/X
Short Squeeze Odds Target $61,300
CoinGlass liquidity data further strengthened the bearish outlook, with price dropping in multiple tiers as it did in the last week of August.
relevant: Bitcoin Analysis Warns of 2023 Re-launch Risk as Stocks Crash 10%
BTC Liquidation Heatmap (screenshot). Source: CoinGlass
Popular trader CrypNuevo said both bullish and bearish liquidity hunts could occur this week.
“From a trading perspective, I prefer to go long, so it would be better to see the downtrend first, liquidate, fill the wick at $56,600, and then go long,” he wrote in part of the X thread.
“So I’m keeping long orders at $56.6k on Sunday and Monday in case there’s a bad move early in the week.”
CrypNuevo has set a potential liquidity target price of $61,300.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.