Bitcoin price action culls $30 million longs ahead of Fed Chairman speech

• Bitcoin longs worth $29.88 million and shorts worth $3.87 million faced liquidations over the last 24 hours.
• With the liquidity to the downside purged, BTC is likely going to trigger a small rally to the next liquidity pool at roughly $26,800.
• Fed Chairman Jerome Powell’s speech on September 28 could trigger volatility for crypto markets.

Bitcoin (BTC) price’s move over the weekend was relatively stable, but volatility picked up at the end of the weekend. BTC dropped 2.61% in six hours, causing millions in liquidations. But judging from the recent move, the flush of long positions could trigger a minor uptick. 

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Bitcoin price to target shorts now

On September 24, Bitcoin (BTC) price dropped from $26,661 to $25,965, triggering long liquidations worth $29.88 million, according to CoinGlass data. During this move, $3.87 million worth of shorts were also affected. Regardless, the last 24 hours have culled nearly $34 million worth of overleveraged BTC traders.

BTC liquidation heatmap

A closer look at Coinglass’ Bitcoin heatmap shows that the downside liquidity, aka sell-side liquidity, has been purged. A surge in buying pressure would not be unlikely that pushes BTC to target the short-seller liquidity, aka buy-side liquidity, present at roughly $26,900. In some cases, Bitcoin price might even head up to $27,000, where roughly $323 million in short stops are present.

A further move up north toward $27,423 would cull nearly $393 million worth of short positions.

BTC/USDT heatmap

After the recent liquidity purge to the downside, the logical move for Bitcoin price would be to head higher. 

What to expect from the Fed Chair’s speech?

Fed Chairman Jerome Powell’s speech on September 28 at 8:00 PM UTC is likely going to add volatility to the mix and create a hostile environment for traders. So investors need to exercise caution when trading cryptocurrencies this week. 

Based on the Summary of Economic Projections, the median projection for the federal funds rate will be 5.6% at the end of the year. With the current rates at 5.25% to 5.50%, the Federal Reserve is likely going to go for another quarter-point hike in November or December. 

But the Fed Chair Jerome Powell has been extremely clear about decisions being taken based on incoming data rather than sticking to the projections or forecasts. So, in the speech on September 28, the Chair is likely going to reiterate the above and give a vague suggestion for another potential rate hike on September 28.

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