Bitcoin investors join risk assets in a “rush to the sidelines” amid BTC price lows of under $56,000.
Bitcoin BTC $56,627 neared monthly lows on Sept. 4 as crypto markets continued to react to a United States tech stock rout.
Nvidia woes spill over to BTC price
Data from TradingView confirmed lows of $55,602 on Bitstamp — a level not seen since Aug. 8.
After recovering as much as 40% from its August crash, BTC/USD thus began to backfill downside candle wicks toward $50,000.
This time, however, the impetus was not Japanese stock market performance, but tech giant Nvidia. A US subpoena sent the firm’s stock price tumbling, and risk assets were quick to follow suit.
Gold, which just weeks ago set a new all-time high above $2,500, shed up to 1.3% on Sept. 3.
Japan’s Nikkei 225 nonetheless saw its own snap reaction to the previous day’s losses, dropping 4.2% during the Sept. 4 Asia trading session and adding pressure to Bitcoin and altcoins.
“September has commenced with a widespread rush to the sidelines,” trading resource The Kobeissi Letter wrote in part of its latest commentary on X.
Analyzing BTC price behavior, popular trader CrypNuevo spelled out the ongoing candle wick filling exercise underway, with short-term targets extending to $51,500.
“7-days liquidations hit at $57k, and $56.6k (4h) long wick filled. Run for liquidity and wick fill projection completed,” he wrote.
“Watching for a potential bounce around this area. And if lost, we’ll fill the daily wick at $51.5k.”
Fellow trader Jelle saw similar potential for a reversal.
“Sweep + potential 12h bullish divergence forming for Bitcoin, as it tests the support level again,” he told X followers on the day alongside a chart showing relative strength index (RSI) readings.
“Didn’t get that move up first unfortunately but we have now hit my downside target so hopefully this just means we are now ready for that relief rally sooner rather than later,” Credible Crypto added.
“Nice wipe on OI here but no immediate signs of buyers stepping in just yet.”
Traders see Bitcoin volatility continuing
Data from monitoring resource CoinGlass meanwhile recorded total crypto long liquidations of $200 million for the 24 hours to the time of writing.
In its latest bulletin to Telegram channel subscribers, trading firm QCP Capital implied that more could come thanks to increasing volatility.
“QCP’s Volatility Momentum Indicator (VMI) has been triggered this morning for both BTC and ETH, indicating that the market is entering a period of heightened volatility,” it confirmed, adding that the signal was nonetheless “directionally agnostic.”
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