Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin (BTC) bounced back from recent ten-day lows at the Wall Street opening on April 20, as U.S. employment data enhanced investor optimism.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC price: "Lights out" at $28,000?
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD began to rise after reaching $28,360 on Bitstamp.
Despite an ongoing correction, the pair struggled to regain $29,000 as a support level, as U.S. unemployment figures suggested that tighter financial conditions were helping to temper inflation.
Spot gold emerged as the primary risk asset beneficiary, rising back above $2,000 during the day.
XAU/USD 1-hour candle chart. Source: TradingView
U.S. stock markets opened positively but later reversed their gains, with the S&P 500 and Nasdaq Composite Index both down 0.6%.
As BTC/USD hovered around $28,800 at the time of writing, well-known Twitter trader and analyst Adam cautioned about the current range’s inability to hold.
“This appears to be a ‘lose this level, and it's lights out’ type of situation,” he acknowledged alongside a chart illustrating the support range.
“Participation-wise, at lows pretty muted for my liking to get aggressive long here. Happy to buy reclaim above local S/R.”
BTC/USD annotated chart. Source: Adam/ Twitter
Another trader, Pierre, was observing a retest of a “no-trade zone” extending down to $27,000.
Related Posts
A few days later, and here we are retesting the "DO NOT TRADE HERE" zone from above, in confluence with D1 trend that has been defended since 20.5-21.8k. https://t.co/q2km1uyfgu pic.twitter.com/VwPKC3FKM4
— Pierre (@pierre_crypt0) April 20, 2023
An additional post detailed the potential upside and downside targets should BTC/USD fail to maintain a trend established over several weeks on daily timeframes.
price > D1 trend (defended since low 20s) & 28,000-28,500 (May 2022 support // March 2023 resistance) confluence == good
price < D1 trend (defended since low 20s) & 28,000-28,500 (May 2022 support // March 2023 resistance) confluence == bad
Voilà, that's it. GL HF https://t.co/k50u8cwR6a pic.twitter.com/Bjzhq7DgZ9— Pierre (@pierre_crypt0) April 20, 2023
Data from the Binance order book revealed that bid liquidity was diminishing below the spot price an hour prior to the jobs data release, with the nearest significant support now at $28,000.
“Note: Local support just got rugged,” stated monitoring resource Material Indicators, which provided the data and shared it on Twitter, in part of its accompanying commentary.
“Some was placed to absorb a dump just above $28k. If it gets hit, expecting $28k to get rugged.”
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
Crypto liquidations cool after 2023 record
With funding rates in the negative, long liquidations paused on the day following April 19, which recorded the highest total of 2023.
Related: Can Bitcoin reclaim $30K? Watch these BTC price levels next
According to data from Coinglass, cross-crypto long liquidations on that date amounted to $262 million, while the figure for April 20 was only $34 million.
Crypto liquidations chart. Source: Coinglass
Magazine: Bitcoin in Senegal: Why is this African country using BTC?
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making a decision.
