Bitcoin Short Positions Worth $32 Million Wiped Out as Price Briefly Spikes to Mid-$27,000s – Here’s Where BTC is Headed Next
Bitcoin (BTC)'s near-term outlook has taken a turn for the better on in recent days, thanks to these recent technical developments....
- Bitcoin (BTC) futures positions worth over $44 million were wiped out on Monday as the spot price swung over $1000 between session lows and new highs for the month.
- No specific news stories or fundamental catalysts were identified as driving the price action.
- A filing from an auditor of Binance.US expressing difficulty in verifying Binance's collateralization of assets may have contributed to the pullback in BTC price.
- The price action was influenced by expectations for an interest rate hold from the US Federal Reserve and technical buying, with Bitcoin finding support at its 21DMA and a downtrend since early August.
- $32 million of the $44 million in futures position liquidations were short positions.
- Bitcoin's price outlook improved after breaking above its recent downtrend and 21DMA, but a break above key resistance in the $27,700-$28,500 area is needed for a retest of yearly highs.
- The Fed's new economic forecasts and interest rate projections will be closely watched to assess the probability of further rate hikes and rate cuts, which could impact Bitcoin's price.
- The negative correlation between Bitcoin and the US dollar and US yields may keep Bitcoin within its recent $25,000-$28,000 range.
The sentiment in the article is mostly neutral, with a focus on analyzing the factors influencing Bitcoin's price and the potential impact of the US Federal Reserve's actions on the cryptocurrency market.