Bitcoin Short Positions Worth $32 Million Wiped Out as Price Briefly Spikes to Mid-$27,000s – Here’s Where BTC is Headed Next

Bitcoin Short Positions Worth $32 Million Wiped Out as Price Briefly Spikes to Mid-$27,000s – Here’s Where BTC is Headed Next

Sep 18, 2023

By Joel Frank | @joel-frank

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.