The cryptocurrency market is valued at $2.93 trillion, marking a roughly 1.39% increase from the previous day’s close. This comes five days after breaking out of an inverse head and shoulders pattern.
Institutional capital returned first, subsequently compelling traders betting against the upward movement to cover their positions.
1. Bitcoin ETFs Bought for Four Straight Sessions
Spot Bitcoin exchange-traded funds pulled in $159.45 million on September 17, $433.03 million on September 18, $998.95 million on September 21, and $714.75 million on September 22. This totals $2.31 billion across four sessions, arriving just days after those same investment vehicles experienced substantial outflows.
This reversal completely shifted the momentum for September. Before the buying streak began, the month was running a deficit of $278.85 million, but it now reflects approximately $2 billion in net inflows.
- Four sessions: $2.31 billion in, the largest on September 21
- Month flipped: from $278.85 million out to about $2 billion in
- Fund assets: $110.84 billion from $96.25 billion
2. Short Sellers Were Forced to Buy
The upward surge also trapped market participants positioned for a decline. When Bitcoin surpassed $84,000 on September 21—marking its highest price point since January 31—short positions totaling $262.30 million were liquidated within a single hour, compared to just $9.53 million in long liquidations.
A liquidated short position is closed out by purchasing the asset, which generates additional buying pressure during an upward move. Total liquidations reached $599.15 million for the day, impacting 127,304 traders. Short liquidations continued to outweigh long liquidations even on September 23.
The market broke above the neckline of its inverse head and shoulders pattern on September 18. A daily close higher than $2.99 trillion would confirm the continuation of the trend toward resistance levels at $3.11 trillion and $3.27 trillion. Conversely, failure to hold that level puts support floors at $2.90 trillion and $2.81 trillion.
- One hour: $262.30 million of shorts against $9.53 million of longs
- One day: $599.15 million liquidated across 127,304 traders
- Effect: forced buying added to the fund demand
Coin Spotlight: Bitcoin Cash (BCH)
Bitcoin Cash (BCH) climbed roughly 28% over a 24-hour window to approach $340, pushing its seven-day gains to about 54%. The CME Group announced plans on September 22 to introduce BCH futures, scheduled to launch on October 19 pending regulatory approval.
The introduction of a CME contract provides institutional funds that are restricted from trading on offshore platforms with direct access to the asset.
Prices have traded within a channel since May 6 and are currently testing its upper boundary, supported by the largest volume bar seen on the chart within the analyzed timeframe. The sharp advance materialized on the September 22 candle, while the subsequent red candle indicates some degree of profit-taking.
- Move: up about 28% over 24 hours, 54% in a week
- Trigger: a daily close above $350, about 3% away, opens $387
- Floors: $276.91, then $231.66
Analyst’s View: The rally is currently backed by institutional capital inflows. Achieving a daily close above $2.99 trillion ahead of the August inflation data release on September 30 would demonstrate further room for growth.