We recently noticed that some third-party companies and individuals impersonated the TOPONE Markets brand and illegally misappropriated our trademarks.

We Hereby Reiterate Our Statement:

  • TOPONE Markets does not provide discretionary account operation trading services, nor does it cooperate with other third-party vendors and/ or agents to provide such services.
  • TOPONE Markets staff will not promise to our customer the definite profit, please do not trust any kind of the profit promise or profit related picture, such as screenshot/ chat history, etc, all investment profit can be only viewed on our official website and application.
  • TOPONE Markets is a professional online trading platform with low spreads and zero handling fees. Be wary of any behavior that asks you for any fees directly and privately. TOPONE Markets does not charge a fee at any stage of its trading process or other fee.

If you have any questions or concerns, please feel free to reach us by clicking the "Online Customer Support" or send an email to our customer care team cs@top1markets.com. We will answer your questions and assist you promptly.

Understood
We use cookies to learn more about how you use our website and what we can improve. Continue to use our website by clicking "Accept". Details
Este sitio web no proporciona servicios de a los residentes de Estados Unidos.
Market News Bitcoin Short Positions Worth $32 Million Extinguished Upon Price Spike to Mid-$27,000s - Here's Where BTC Is Headed Next

Bitcoin Short Positions Worth $32 Million Extinguished Upon Price Spike to Mid-$27,000s - Here's Where BTC Is Headed Next

The Bitcoin futures market has had a scary week! On Monday, the spot price of Bitcoin (BTC), the world's largest cryptocurrency, fluctuated sharply after hitting a record high, once falling below the $26,400 mark, triggering market panic. According to statistics, more than $44 million in Bitcoin futures contracts were forced to be liquidated that day.

TOP1 Markets Analyst
2023-09-19
6969

 Bitcoin 2.png

 

Bitcoin (BTC) futures positions worth over $44 million were liquidated on Monday amid turbulent trade that saw the spot price of the world's largest cryptocurrency by market capitalization fluctuate by more than $1000 (over 4%) between session lows near $26,400 and new monthly highs near $27.

 

BTC was last trading in the $26,700 range, representing a daily increase of close to 1%.

 

There were no identifiable news stories or fundamental catalysts propelling the price movement.

 

A filing from an auditor of Binance.US stating that they sometimes found it "extremely difficult" to verify Binance's collateralization of assets may have contributed to worries that weighed on sentiment, resulting in the BTC price falling below $27,000.

 

But the price action was supported by 1) expectations of an interest rate hold by the US Federal Reserve later this week and 2) technical buying, with Bitcoin recently finding support at its 21-day moving average (DMA) and a downtrend that had been in effect since early August.

 

According to coinglass.com, approximately $32 million of the $44 million in futures position liquidations on Monday were short positions, which is not too remarkable given that BTC reached its highest level of the month so far.

 

This marked the largest defeat of Bitcoin bears since last Monday, when the BTC price momentarily fell below $25,000 for the first time in three months.

 

The price prognosis for Bitcoin deteriorated in August, when the cryptocurrency fell below its 2023 uptrend and 200-day moving average.

 

However, since breaching above its recent downtrend and 21DMA, things are looking brighter.

 

At the very least, BTC appears to have discovered a new price range between $25,000 and $28,000.

 

In order for a retest of the yearly highs to become likely, a break above key resistance in the $27,700-$28,500 region will be required.

Where Will the Bitcoin (BTC) Price Go Next?

This week, macro is anticipated to be a major driver of the Bitcoin price.

 

It is widely anticipated that the Federal Reserve will maintain interest rates on Wednesday, but will likely leave the door open for another rate hike later this year.

 

The central bank will be releasing its new economic forecasts and a new dot plot summary of Fed members interest rate projections – these two releases will be closely scrutinised by traders, and will be used to assess the probability of further rate hikes in 2023, and on the timing of any potential rate cuts in 2024.

 

While most investors do not anticipate another rate hike this year, the Fed's communication that another rate hike is possible is preventing markets from becoming unduly enthusiastic about the pricing of rate cuts in 2024 and beyond, thereby helping to support US yields and the US dollar.

 

Consequently, while this week's Fed meeting may not provide a negative shock, it is unlikely to provide much of a boost for Bitcoin, presuming the US dollar and US yields do not reverse sharply higher.

 

Bitcoin has a negative correlation with the US dollar and US yields historically.

 

The world's largest cryptocurrency is likely to remain within its recent multi-month range of $25,000 to $28,000.


Bonus rebate to help investors grow in the trading world!

Need Assistance?

7×24 H

Download the APP for Free