{"id":154220,"date":"2023-09-12T13:57:16","date_gmt":"2023-09-12T08:27:16","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=154220"},"modified":"2023-09-12T13:57:16","modified_gmt":"2023-09-12T08:27:16","slug":"bitcoin-price-bounces-back-to-26000-heres-why-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/bitcoin-price-bounces-back-to-26000-heres-why-crypto-news\/","title":{"rendered":"Bitcoin Price Bounces Back To $26,000, Here’s Why – Crypto News"},"content":{"rendered":"

<\/p>\n

\n

In a swift turnaround from yesterday\u2019s dip, Bitcoin (BTC) surged to nearly $26,000 during Asian trading hours on Tuesday. This recovery, which saw the BTC\u00a0 climb from $25,210 to $25,973 in a mere 30 minutes (from 3:00 am to 3:30 am UTC), was not driven by any specific news event. Instead, the dynamics within the Bitcoin futures market played a pivotal role.<\/p>\n

Why Has The Bitcoin Price Bounced Upwards?<\/h2>\n

Renowned analyst Skew provided<\/a> a technical perspective on the price movement, referring to it as a \u201ctextbook short squeeze.\u201d Delving deeper into Skew\u2019s analysis, he pointed out a clear divergence in the Cumulative Volume Delta (CVD) of perpetual contracts (or \u201cperps\u201d) with the actual price. In trading, a divergence between CVD and price can signal a potential reversal. In this context, while sellers were trying to push the price below $25,000, the CVD indicated that buying pressure was mounting.<\/p>\n

Furthermore, the futures market had a high number of short positions relative to the open interest (OI), and the funding rate was negative. A negative funding rate typically means that shorts are paying longs, indicating a bearish sentiment. Despite attempts to drive the price down, Bitcoin was reclaiming its swing long price level at $25,300 and failed to maintain the bearish trend in the lower time frame (LTF).<\/p>\n

The spot market, where assets are bought and sold for immediate delivery, was showing signs of a bullish structure change, with prices gradually moving higher. Skew suggested that the culmination of these factors led to a short squeeze, where those who bet against the market (short sellers) are forced to buy back into the market to cover their positions, further driving up the price.<\/p>\n

Skew\u2019s analysis essentially highlights that while there was a bearish sentiment with many traders betting against Bitcoin, underlying indicators were hinting at a potential bullish reversal. For traders, the immediate goal post-squeeze is to reclaim $26,000.<\/p>\n

Bitcoin CVDs & Price | Source: X @52kskew<\/figcaption><\/figure>\n

TheKingfisher offered a more succinct take, hinting<\/a> at the short squeeze and its impact on those who were betting against Bitcoin: \u201cSee you around high lev shorters. BTC Cleared them again.\u201d<\/p>\n

Axel Adler Jr. shed light on the broader market sentiment, noting<\/a>, \u201cTraders do not plan to go any lower. Net Taker Volume has risen by 9.79%. Over the past year, this is a new record for the balance of open Taker orders with long positions.\u201d<\/p>\n

\"Bitcoin
Bitcoin Net Taker Volume SMA 7 days | Source: X @AxelAdlerJr<\/figcaption><\/figure>\n

Despite the rapid price movement, the short squeeze\u2019s magnitude was relatively modest. Coinglass data reveals that about $12.32 million in BTC shorts were liquidated. For context, the most significant short liquidation event in the last three months occurred on August 17, amounting to $120 million, when BTC briefly dipped to $24,700 before making a quick recovery above $26,600.<\/p>\n

The decline in open interest in futures on the major exchanges was also rather small. According to Coinglass, open interest fell from $10.66 billion to $10.65 billion. This slight decline suggests that few traders had to close their bets, with funding rates turning positive, signaling a shift from bearish to bullish sentiment.<\/p>\n

At press time, BTC stood at $25,768.<\/p>\n

\"Bitcoin
BTC jmups to $26,000, 4-hour chart | Source: BTCUSD on TradingView.com<\/a><\/figcaption><\/figure>\n

Featured image from Millionero Magazine, chart from TradingView.com<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

In a swift turnaround from yesterday\u2019s dip, Bitcoin (BTC) surged to nearly $26,000 during Asian trading hours on Tuesday. This recovery, which saw the BTC\u00a0 climb from $25,210 to $25,973 in a mere 30 minutes (from 3:00 am to 3:30 am UTC), was not driven by any specific news event. Instead, the dynamics within the […]<\/p>\n","protected":false},"author":2,"featured_media":154221,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-154220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/154220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=154220"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/154220\/revisions"}],"predecessor-version":[{"id":154223,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/154220\/revisions\/154223"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/154221"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=154220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=154220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=154220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}