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On April 27, Bitcoin (BTC) returned to a well-known range as concerns regarding purported transactions involving Mt. Gox and the U.S. government subsided.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
"Choppy" price movements keep Bitcoin traders wary
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD was trading around $29,000 on Bitstamp, reflecting an increase of nearly $2,000 from the previous day’s low.
Sudden volatility emerged following the opening of Wall Street, as the ascent towards $30,000 was abruptly halted by concerns that BTC from wallets associated with the U.S. government and the now-defunct Mt. Gox exchange were being transferred.
As reported by Cointelegraph, these claims were ultimately proven false, but not before a significant portion of open interest in derivatives markets was eliminated, causing BTC/USD to drop by 7%.
A subsequent rebound brought the pair back to $29,500 before a phase of consolidation began.
In response, well-known trader Jelle urged his Twitter followers to disregard short-term fluctuations.
“The higher timeframe direction for Bitcoin is evident – everything else in the interim is just noise,” he stated on that day.
“Engaging with the volatility is acceptable, but maintain focus on the broader perspective. Above $30,000, targets escalate rapidly.”
BTC/USD annotated chart. Source: Jelle/Twitter
Jelle mentioned that he was “unsure” about the short-term price direction, but noted that the liquidation of leveraged positions is “typically a positive indicator” for market strength.
Another trader, Crypto Tony, adopted a more cautious stance, opting to wait for additional signals before entering the market.
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“$27,700 is the level I am closely monitoring today for a short position. I need to observe weakness first to enter this, but even a long position here appears risky to me,” he remarked.
“Price action is volatile, so sitting this one out isn’t a poor strategy and focusing on a few stronger altcoins is advisable.”
BTC/USD annotated chart. Source: Crypto Tony/Twitter
Trader Muro emphasized $29,500 as a critical threshold for Bitcoin, with acceptance or rejection at this level being crucial for determining the trend’s direction.
$BTC thoughts
Monitoring 29500 for either rejection and a larger correction (blue drawing)
or consolidation above 29500 would suggest a move higher to me (red) pic.twitter.com/ExWwp6kxZG— Muro (@MuroCrypto) April 27, 2023
Traders affected by BTC price decline
Data from the monitoring platform Coinglass illustrated the extent of the anxiety among market participants.
Related: Bitcoin price can ‘easily’ hit $20K in next 4 months — Philip Swift
Bitcoin liquidations chart. Source: Coinglass
On April 26, both short and long positions were impacted as Bitcoin liquidations exceeded $150 million. Total liquidations across the crypto market surpassed $320 million.
Observers noted the strong reaction to the news event, particularly on lower timeframes, including contributors to the on-chain analytics platform CryptoQuant.
Second highest peak of liquidations at position Long in just one hour in 2023
About $36.5M in positions liquidated in the last hour
On today's day alone (26th) that's over $65M liquidated so far#BTC #Bitcoin pic.twitter.com/HweYWAF5GD— G a a h (@gaah_im) April 26, 2023
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This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making any decisions.
