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An $860 surprise price correction on Sept. 6 took Bitcoin (BTC) from $19,820 to $18,960 in less than two hours. The movement caused $74 million in Bitcoin futures liquidations at derivatives exchanges, the largest in almost three weeks. The current $18,733 level is the lowest since July 13 and marks a 24% correction from the rally to $25,000 on Aug. 15.

It is worth highlighting that a 2% pump toward $20,200 happened in the early hours of Sept. 6, but the move was quickly subdued and Bitcoin resumed trading near $19,800 within the hour. Ether’s (ETH) price action was more interesting, gaining 7% in the 48 hours preceding the market correction.

Any conspiracy theories regarding investors changing their position to favor the altcoin can be dismissed as Ether dropped 5.6% on Sept. 6, while Bitcoin's $860 loss represents a 3.8% change.

The market has been in a bit of a rut since Aug. 27 comments from U.S. Federal Reserve Chair Jerome Powell was followed by a $1.25 trillion loss in U.S. stocks in a single day. At the annual Jackson Hole Economic Symposium, Powell said that larger interest rate hikes were still firmly on the table, causing the S&P 500 to close down 3.4% that day.

Let’s take a look at crypto derivatives data to understand whether investors have been pricing higher odds of a downturn.

On Sept. 6, Bitcoin (BTC) price crumbled below $20,000 and the asset looks ready to undergo further decline in September due to a strong U.S. dollar and an ominous technical analysis pattern.

Bitcoin eyes $15,000 next

From a technical perspective, Bitcoin risks dropping to $15,000 or below in the coming weeks after breaking out of its prevailing "bear flag" pattern.

For the unversed, bear flags form when the price consolidates higher inside a parallel, ascending range after a strong downtrend. They typically resolve after the price breaks below the lower trendline and falls by as much as the previous downtrend's length.

Bitcoin has entered the so-called breakdown stage of its bear flag pattern, with its downside target lurking south of $15,000, as illustrated in the chart above.

Cash is king

The prospects of a weaker Bitcoin heading further into 2022 are growing mainly because of a worsening economic backdrop.

Bitcoin (BTC) traded in an increasingly narrow range on Sept. 6 as bets piled in over an imminent breakout.

Binance futures giant sucks in spent BTC

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staying under $20,000 for a fourth straight day with bulls failing to crack resistance.

As many wondered when and how the latest consolidation phase would end, two popular social media traders noticed an ongoing accumulation trend by an unknown large-scale Binance futures trading entity.

With retail investors selling, that entity had spent several days soaking up the liquidity, and the result was likely obvious.

“Bounce incoming,” Il Capo of Crypto predicted in part of an update on the phenomenon, describing the entity’s long BTC position as “massive” and “easily” worth 30,000 BTC or more.