September Leaves Behind Trail Of Blood, Bitcoin Long Liquidations

After what appeared to be a month of prosperity after the August bull run, Bitcoin has now entered an era of increasingly bearish signals. The asset saw a lot of rallies that pushed it over two-month highs, successfully breaking above the $ 52K resistance on a few occasions. Owinging the entire market into an extended period of positive sentiment.

September has now come with its own unique problem for the digital asset. The price of Bitcoin has been suffering since the beginning of the month, started by a lightning crash that shook the market just a week in September. The market continues to suffer the aftershock of this lightning crash that left a trail of blood in the market and caused massive liquidations.

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Bitcoin price crash leads to sales

In just a few days, the price of bitcoin has dropped from $ 47,000 to $ 40,000, which has triggered liquidations in the market. The long-term liquidations amounted to $ 860 million across exchanges. The liquidations occurred over two days as the price of the digital asset inevitably fell to $ 40,000 on Tuesday, September 21st. Although significant, the liquidations, spread over two days, still sat below the sales seen after September 7th.

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Monday marked the start of liquidations as the market liquidated long positions of $ 470 million. And the following Tuesday also a total of long positions of $ 390 million were liquidated. At this point, the price of bitcoin has reached levels not seen since mid-August. And while market sentiment shifted to negative, the price continued to plunge.

BTC longs liquated on Monday and Tuesday add up to $860 million | Source: Arcane Research

Current sales volumes remained below the $ 1.2 billion sales in early September, suggesting that current sales are more organic than previous ones. It also shows that the current market is more influenced by spectacle performance compared to the derivatives market.

September And Its Chocolate On The Market

September has historically come with challenges for the crypto market. So the crash that shook bitcoin and the entire market at the beginning of the month is completely marked. Crashes with at least a 17% value loss occurred in September over the past four years and it appears that 2021 has been in line with this trend.

However the end of September always came with better forecasts for the following month. Graphic analysis shows crashes in the month before recoveries, which puts the market towards a recovery of its lost value. Set the market for another bull.

BTC price trading north of $43K | Source: BTCUSD on TradingView.com

The price of BTC has now recovered above Tuesday’s lows that saw the digital asset plunge below $ 40K. Bitcoin is currently trading over $ 42,000 at the time of writing. While the total market cap fell below $ 800 billion.

Featured image from Bitcoin News, charts from Arcane Research and TradingView.com