Bitfinex is drawing attention to a pivotal technical juncture for Bitcoin after the cryptocurrency produced the largest single-day short squeeze in its history. On August 19, Bitcoin's breakout triggered more than $1.1 billion in liquidated BTC short positions as price surged through $67,000, ending a ten-week range between $62,000 and $66,000 and accelerating toward $81,500. The move later cooled after hawkish remarks from Federal Reserve Chair Kevin Warsh pushed Bitcoin back below $77,000.
The exchange's weekly SuperTrend indicator remained bearish on September 1, with its line near $79,600. Bitcoin was trading less than $1,000 below that threshold. According to Bitfinex, a weekly close above $79,600 could flip the indicator bullish and move the line underneath price, marking the key confirmation level for a durable trend reversal. Until then, the weekly bearish signal remains intact.
The daily SuperTrend was already bullish near $72,279, with Bitcoin trading around $78,875 on September 1. Bitfinex notes that comparing daily and weekly signals can help traders distinguish an early trend change from a more sustainable move. SuperTrend is built around volatility using Average True Range, and its line automatically widens as volatility increases; traders may use it as a dynamic trailing stop, though sideways markets can still generate repeated false flips.
Separately, Bitfinex highlighted that September has historically been bearish for Bitcoin, with an average return of -2.95% since 2013. Analysts cautioned that upcoming economic indicators, particularly Friday’s payroll reports, could act as triggers for market volatility. Current market data also reflects limited trading volume, suggesting caution among traders ahead of potential market-moving events.
