Bitcoin (BTC) saw a sharp decline of over 2% on September 1, as the price dropped to $57,273, according to CoinMarketCap data. The dip occurred during the weekend when market liquidity is typically lower, making it difficult for buyers to prevent further losses.
Bitcoin ended the month of August down 8.6%, a disappointing performance compared to its average monthly gain of 1.75% based on data from CoinGlass. Historically, September has been a red month for Bitcoin, with an average loss of 4.5% over the years.
CoinGlass liquidation heatmap painted a bearish picture, showing levels of potential short liquidations all the way up to $64,000 The data suggested that traders are positioned short on the futures market, reflecting the bearish sentiment of the market. However, should prices move up, it could lead to a short squeeze.
Trader exitpump further observed "aggressive" short selling at the day’s lows, with the weekly close approaching. Analyst Rekt Capital added that Bitcoin continues to test the bottom of a critical channel on the weekly chart. "Bitcoin needs to Weekly Close above $58,450 to confirm the Channel bottom as support," Rekt Capital noted, highlighting the importance of this level for the cryptocurrency's short-term outlook.
Trader CrypNuevo shared that he is leaning towards long positions and would prefer to see a downward move to trigger liquidations around $56,600, where he plans to place a long order. CrypNuevo also identified $61,300 as a potential target for an upside liquidity grab, indicating that the market could see significant price swings in the near term. As September unfolds, Bitcoin faces the challenge of overcoming its historically weak performance during this month.