Bitcoin (BTC) returned to a known range on April 27, as panic over alleged transactions by Mt. Gox and the US government faded.
‘Rough’ Price Action Keeps Bitcoin Traders Wary
Data from Cointelegraph Markets Pro and TradingView showed that The BTC/USD pair was trading near $29,000 on Bitstamp, nearly $2,000 higher than the previous day’s low.
The sharp volatility had been unleashed after the Wall Street open, when the bulls’ run towards $30,000 was abruptly interrupted. on fears that BTC from US government-controlled wallets and entities related to the defunct Mt. Gox exchange were on the move.
As Cointelegraph reported, the claims turned out to be false, but they equally wiped out a large part of the open interest from the derivatives markets and caused the BTC/USD pair to plunge by 7%.
A subsequent recovery brought the pair back to $29,500 before consolidation occurred.
In response, popular trader Jelle asked his Twitter followers to leak the short-term curves.
“Bitcoin’s short-term direction is clear, all else is noise,” wrote that day.
“Trading on volatility is fine, but you have to focus on the big picture. Above $30,000, the targets increase rapidly.”
Jelle added that he was “not sure” about the path of prices in the short term, but that the destruction of leveraged positions was a “generally good sign” for market strength.
Your colleague Crypto Tony was more cautious and chose to wait for further signals before entering the market.
“$27,700 is the level I am watching closely today for a short position. I need to see weakness first to get into this, but even a long position here seems risky to me,” stated.
“PA is rough so think hard this is not a bad move and focus on some stronger altcoins.”
Trader Wall targeted $29,500 as the make-or-break zone for bitcoin; acceptance or rejection at that level is key to determine the direction of the trend.
$BTC thoughts
Watching 29500 for either rejection and a bigger correction (blue drawing)
or consolidation above 29500 would indicate a move higher to me (red) pic.twitter.com/ExWwp6kxZG
— Wall (@MuroCrypto) April 27, 2023
My thoughts on BTC: the $29,500 level to watch for either rejection and a major correction (blue drawing), or consolidation above $29,500 would indicate a move to the upside (red)
Traders liquidate BTC
Data from the Coinglass monitoring resource showed the extent of panic among market participants.
On April 26, both shorts and longs suffered bitcoin liquidations that exceeded $150 million. Cross-cryptocurrency liquidations surpassed $320 million.
Observers noted the intense reaction to the news at lower time frames in particular, among them the collaborators of the on-chain analysis platform CryptoQuant.
Second highest peak of liquidations at position Long in just one hour in 2023
About $36.5M in positions liquidated in the last hour
On today’s day alone (26th) that’s over $65M liquidated so far#BTC #Bitcoin pic.twitter.com/HweYWAF5GD
— Gaah (@gaah_im) April 26, 2023
It is the second highest peak of liquidations in the long position in just one hour in 2023. There were about USD 36.5 million in positions liquidated in the last hour Only today (26) it is already more than USD 65 million settled so far.
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