From Sept.12 to Sept.18, BTCUSD remained in a significant consolidation phase, forming a wedge on the 4h and 1d timeframes. Price failed break the $10,000-10,400 range, but the momentum has shifted.
This morning, crypto traders woke up with BTC trading at $9,830USD, the first breakout in the month. After days of consolidation, has the uncertainty ended? If we breakdown the BTC chart, is evident that the 4h candle shows the bears are in control. Nonetheless, the $9,800 is a huge area of liquidity, and a possible test of the zone should not be discarded. If today’s BTC daily candle closes above the support zone, this will signal rejection, and from there, another recovery. If the daily candle closes significantly below the 9,8K or 9,7K level, the next key support is the $9,300-9,000 zone.
The crypto analyst @CarpeNoctom noted how BTC’s falling price provoked the liquidation of a huge amount of limit orders on the Futures platform, BitMEX.
Yes, the breakout seems to be one of those BitMEX-type of moments. The falling price of Bitcoin triggered over $150 million in short positions, according to many researchers. In the image shown below, it can be seen that XBTUSD liquidations reached over $100M in less than an hour. The collapse caused BTC to lose over 6% against the Greenback, dragging along the whole crypto market along with it. At the time of writing, ETH is down 1.55%, XRP -7%, ARK -6%, TRX -7%, LTC -5%.
Image c/o TokenFlipper