Bitcoin (BTC) futures positions worth over $44 million were wiped out on Monday in choppy trade that saw the spot price of the world’s largest cryptocurrency by market capitalization swing more than $1000 (over 4%) between session lows around $26,400 and new highs for the month around $27,400.
BTC was last trading in the $26,700s, up close to 1% on the day.
No specific news stories or fundamental catalysts could be precisely pinpointed as driving the price action.
A filing from an auditor of Binance.US, who said they found it “very difficult” to verify Binance’s collateralization of assets at times, could have led to some jitters that weighed on sentiment, leading to the pullback in the BTC price back below $27,000.
But underpinning the price action was 1) expectations for an interest rate hold from the US Federal Reserve later this week and 2) technical buying, with Bitcoin recently finding support at its 21DMA and at a downtrend that had been in play since early August.
As per coinglass.com, of the $44 million in futures position liquidations on Monday, around $32 million were of short positions, not too surprising after BTC hit its highest level so far this month.
That marked the biggest wipeout of Bitcoin bears since last Monday, when the BTC price fell briefly to its lowest level in three months under $25,000.
Bitcoin’s price outlook took a turn for the worse back in August when the cryptocurrency fell below its 2023 uptrend and 200DMA.
However, since breaking above its recent downtrend and 21DMA, things are looking brighter.
At the very least, BTC appears to have found a new $25,000-$28,000ish range.
For a retest of yearly highs to be on the cards once again, a break above key resistance in the $27,700-$28,500 area will beRead more on cryptonews.com