Eyes are on $28,000 support to hold in the event of continued downside, but Binance order book data warns that even this may be “rugged.”
Bitcoin (BTC) recovered from new ten-day lows at the April 20 Wall Street open as United States jobs data boosted investor confidence.
BTC price: “Lights out” at $28,000?
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reversing upward after hitting $28,360 on Bitstamp.
Amid an ongoing correction, the pair nonetheless failed to reclaim even $29,000 as support as U.S. unemployment data hinted that tighter financial conditions were working to cool inflation.
Spot gold became the main risk asset beneficiary, climbing back above $2,000 on the day.
U.S. equities opened higher but subsequently reversed their uptick, with the S&P 500 and Nasdaq Composite Index down 0.6%.
With BTC/USD circling $28,800 at the time of writing, popular Twitter trader and analyst Adam warned over the current range failing to hold.
“This seems like a ‘lose this level, and it’s lights out’ type of scenario,” he admitted alongside a chart showing 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.”
Fellow trader Pierre meanwhile eyed a retest of a “no-trade zone” extending down to $27,000.
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 explained the likely upside and downside targets should BTC/USD fail to preserve a trend in place for multiple 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 showed bid liquidity thinning below spot an hour before the jobs data, with the nearest substantial support now at $28,000.
“Note: Local support just got rugged,” monitoring resource Material Indicators, which produced the data and uploaded it to twitter, wrote in part of accompanying commentary.
“Some was placed to absorb a dump just above $28k. If it gets hit, expecting $28k to get rugged.”
Crypto liquidations cool after 2023 record
With funding rates negative, long liquidations took a breather on the day after April 19 saw the largest tally 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 totaled $262 million, with the April 20 number at just $34 million.
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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.
