Bitcoin bulls still have an opportunity to turn the situation around, analysis suggests, with BTC’s price recovering to a key springboard level.
Bitcoin (BTC) fought to regain lost ground at the April 19 Wall Street open as traders called for calm on the day’s downside.
“Unusual” spot sell triggers BTC price suspicion
Data from Cointelegraph Markets Pro and TradingView monitored BTC/USD as it crawled toward $29,500 on Bitstamp.
The pair had shed $1,000 in minutes earlier on the day as over $200 million in long liquidations accompanied a return below $30,000.
Reactions subsequently linked the price action, which originated in a 16,000-BTC market sell on Binance, to a potential forthcoming news event, this ultimately failing to materialize at the time of writing.
$BTC
Either a new local low here if $29K is held & no FUD is dropped laterHowever, 16K BTC is unusual size to be market sold solely from Binance spot usually the kind of sale happens before bad news comes out.
if a nothing burger event; could see an omega short squeeze…
— Skew Δ (@52kskew) April 19, 2023
Market participants thus remained level-headed, arguing that important support levels were still present amid a healthy retracement.
“A move to 28k is normal/healthy,” popular trader Credible Crypto wrote in part of Twitter commentary.
Watch and know your levels to stay ahead. Manage your risk around them.
Still holding the important repair and breakout above $29,000. pic.twitter.com/wsNOaLSJUW
— Jordan (@Jordan__Lindsey) April 19, 2023
Fellow trader Crypto Tony was more cautious, hinting that he expected further downside to ensue next.
“Got a feeling many longing now are going to regret it on Bitcoin,” he tweeted.
“Personally am still out of a position currently. Rather wait for some solid PA to form before rushing in.”
Trader and analyst Rekt Capital, meanwhile, eyed $28,800 as the key level to watch on weekly timeframes.
#BTC has relief rallied into the Higher High,
Though $BTC Daily Closed above the Higher High, price wasn’t able to reclaim it as support
~$28800 (orange) is the key support to hold 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, had his sights on slightly lower numbers, pointing to a potential support retest area on CME Group Bitcoin futures markets.
At around $27,000, this was a “gap” in the futures market left over from mid-2022, which the spot price only managed to “fill” in recent weeks.
“CME futures still haven’t retested this important support & resistance zone, but got very close this morning,” he commented.
“I think bulls should be happy to get an opportunity to reload in this range, if/when we get there. No need for panic/concern yet.”
Bitcoin bulls running out of time?
Looking to upside potential, monitoring resource Material Indicators suggested that there was solid potential for a fiery reclaim of $30,000 and beyond if bulls were able to regain control.
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Everything hinged on $29,500, it argued on the day — exactly the focus level for BTC/USD at the time of writing.
“BTC flushed about $32M out of the range and left a black hole of upside illiquidity,” it commented alongside a print of buy and sell liquidity on the Binance order book.
“If bulls can reclaim $29.5k before ask liquidity returns, there is very little friction between here and the mid $30s.”
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
