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Bitcoin (BTC) attempted to recover lost value at the Wall Street opening on April 19, as traders urged for composure amid the day’s decline.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
“Unusual” spot sell raises BTC price concerns
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it inched toward $29,500 on Bitstamp.
The pair had lost $1,000 within minutes earlier in the day, coinciding with over $200 million in long liquidations as it fell back below $30,000.
Market reactions subsequently associated the price movement, which stemmed from a 16,000-BTC market sell on Binance, with a potential upcoming news event, which ultimately did not materialize at the time of this report.
$BTC
This could either be a new local low if $29K holds and no FUD emerges later.
However, a 16K BTC market sell from Binance is an unusual size, typically such sales occur before negative news is released.
If it turns out to be a non-event, we could witness an omega short squeeze…— Skew Δ (@52kskew) April 19, 2023
Market participants thus remained composed, asserting that significant support levels were still intact amid a healthy correction.
“A move to 28k is normal/healthy,” noted popular trader Credible Crypto in a Twitter commentary.
#Bitcoin
Be aware of your levels to stay ahead. Manage your risk around them.
Still maintaining the crucial repair and breakout above $29,000. pic.twitter.com/wsNOaLSJUW— Jordan (@Jordan__Lindsey) April 19, 2023
Another trader, Crypto Tony, expressed more caution, suggesting that he anticipated further declines to follow.
“I have a feeling many currently longing will regret it on Bitcoin,” he tweeted.
“I am personally still out of a position at this time. I prefer to wait for some solid price action to develop before entering.”
Trader and analyst Rekt Capital, on the other hand, focused on $28,800 as a critical level to monitor on weekly charts.
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#BTC has relief rallied into the Higher High,
Although $BTC Daily Closed above the Higher High, the price wasn’t able to reclaim it as support.
~$28800 (orange) is the key support to maintain on the Weekly #Crypto #Bitcoin https://t.co/yUiLODm95h pic.twitter.com/KQ4gHHKTuy— Rekt Capital (@rektcapital) April 19, 2023
Caleb Franzen, senior market analyst at Cubic Analytics, was looking at slightly lower figures, indicating a potential support retest area on CME Group Bitcoin futures markets.
At approximately $27,000, this represented a “gap” in the futures market that had been left since mid-2022, which the spot price had only recently managed to “fill.”
“CME futures still haven’t retested this significant support and resistance zone, but came very close this morning,” he remarked.
“I believe bulls should be pleased to have a chance to reload in this range, if and when we reach it. There’s no need for panic or concern yet.”
CME Group Bitcoin futures annotated chart. Source: Caleb Franzen/Twitter
Are Bitcoin bulls running out of time?
In terms of upside potential, monitoring resource Material Indicators indicated that there was strong potential for a vigorous reclaim of $30,000 and beyond if bulls could regain control.
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Everything depended on $29,500, it noted on the day — precisely the focal level for BTC/USD at the time of this report.
“BTC flushed about $32M out of the range and created a black hole of upside illiquidity,” it commented alongside a display of buy and sell liquidity on the Binance order book.
“If bulls can reclaim $29.5k before ask liquidity returns, there is very little resistance between here and the mid $30s.”
BTC/USD order book data (Binance). Source: Material Indicators/Twitter
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This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research when making choices.
