Bitcoin (BTC) rallied from fresh 10-day lows at the Wall Street open on April 20, while US jobs data boosted investor confidence.
BTC Price: “Lights Out” at $28,000?
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair had pulled back after hitting $28,360 on Bitstamp.
In the midst of an ongoing correction, the pair, however, it failed to recapture even $29,000 as support as US unemployment data hinted that tighter financial conditions were working to cool inflation.
Spot gold became the main benefited risk asset, rallying back above $2,000 on the day.
US equities opened higher but subsequently reversed their bullish trend, with the S&P 500 and Nasdaq Composite Index shedding 0.6%.
With the BTC/USD pair hovering around $28,800 as of this writing, popular Twitter trader and analyst Adam warned that the current range would not hold.
“This looks like a ‘lose this level and the lights go out’ scenario,” admitted next to a chart showing the support range.
“Participation-wise, lows pretty muted for my liking to get aggressively long here. Happy to buy above local S/R.”
His colleague Pierre, for his part, was aiming for a retest of the “no-trade zone” that extends 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
A few days later, and here we are retesting the “DO NOT TRADE HERE” zone from above, in confluence with the D1 trend that has defended from the $20,500-21,800 level.
An additional post explained the likely bullish and bearish targets should the BTC/USD pair fail to trend for several weeks on daily time frames.
price > D1 trend (defended since low 20s) & 28,000-28,500 (May 2022 support // March 2023 resistance) confluence == good
price
Voila, that’s it. GL HF https://t.co/k50u8cwR6a pic.twitter.com/Bjzhq7DgZ9—Pierre (@pierre_crypt0) April 20, 2023
price > D1 trend (defended from 20,000 bottom) and $28,000-28,500 confluence (May 2022 support // March 2023 resistance) == good
price
Voila, that’s it. GL HF
Data from Binance’s order book showed that supply liquidity dropped below the point one hour ahead of the employment data, with the nearest substantial support now at $28,000.
“Note: Local support has just been made more resilient”, wrote Material Indicators, which produced the data and posted it on Twitter, in part of the accompanying commentary.
“Some moved in to absorb a dump just above $28,000. If he takes a hit, wait until $28,000 to return to resistance.”
Crypto Liquidations Cool Off After Record 2023
With negative funding rates, long sell-offs took a breather the day after the highest number of 2023 was recorded on April 19.
According to Coinglass data, cross-cryptocurrency long liquidations on that date amounted to $262 million, while the April 20 figure was just $34 million.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.
