Analyst: Bitcoin's repeated tests of previous lows may be flushing out leveraged longs ahead of an eventual upward breakout.
TechFlow reports that on September 12, analyst KillaXBT stated that although Bitcoin’s short-term price has continued to move sideways, recent price action has repeatedly broken below previous lows, triggering long-position stop-losses and liquidations. The market’s overarching objective appears to have consistently been to flush out longs.
He suggests that repeatedly sweeping lows can reduce market leverage while gradually weakening investor confidence in long positions, conditioning traders to believe that breaks below prior lows signal further downside. In this context, the final downward sweep could ironically serve as a local bottom, after which the price resumes its expansion toward earlier highs. However, this viewpoint stems from trading structure analysis rather than a deterministic price forecast.
