Bitcoin (BTC) headed lower at the Wall Street open on April 17 as bears began liquidating long positions.
Bitcoin Price Eyes Break Below $29,000
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair fell as low as $29,247 on Bitstamp, its lowest level in a week.
Gains in Asian stocks failed to rescue the day’s losses, which began immediately after the weekly close on April 16.
Traders, many of whom had forecast a retest of the $30,000 support, were not surprised, with many expecting the event to constitute a “buy short” opportunity before Bitcoin rose higher.
Popular Crypto Trader Ed said that the BTC/USD pair had “swept the lows”, while others focused on the area around $28,500 as a potential bottom zone.
Some level of support at 29.2 may give some reaction but 28.6 will be the retest of a major level and a significant one at that. https://t.co/LASJfYoZmb pic.twitter.com/sdLrP51082
—XO (@Trader_XO) April 17, 2023
Some support at 29.2 may give some reaction, but 28.6 will be the retest of an important and significant level.
“BTC bid scales up to $28,500 want to fill, but it’s worth noting that the phrase ‘There are no straight lines in trading’ goes both ways,” summarized monitoring resource Material Indicators, noting changes in liquidity in the Binance order book.
Material Indicators co-founder Keith Alan viewed the 21-day moving average at $28,860 as short-term support.
Failure to hold could trigger a retest of the 200-week moving average at $25,860, around 12% below the current spot price and 16.5% below the recent local high.
#Bitcoin starting the week with some downside volatility. If Technical Support at the 21-Day Moving Average doesn’t hold, I expect a long awaited retest of the 200 Week Moving Average. #nfa pic.twitter.com/jPksE4sAIh
—Keith Alan (@KAProductions) April 17, 2023
#Bitcoin starts the week with some downward volatility. If the technical support at the 21-day moving average does not hold, I look forward to a long-awaited retest of the 200-week moving average.
Despite widespread optimism, Bitcoin bulls were feeling the pain as of this writing, with long selloffs due on April 17 totaling nearly $29 million, according to data from Coinglass. Cross cryptocurrency liquidations stood at almost $67 million.
“Key level here for Bitcoin”, added financial commentator Tedtalksmacro.
“Recovering $29,700 is key to reaching new highs… you wanted a dip, this is the dip!”
US dollar seeks “telegraphed” double bottom
US equities reacted subdued at the open, with the S&P 500 and Nasdaq Composite Index rising around 0.1%.
The dollar posted stronger gains, with the US dollar index (DXY) above 102 after rebounding from its lowest levels in a year.
“Look at $DXY today,” analyst Justin Bennett told Twitter followers.
“If this plays out, it will be the most telegraphed bottom that most didn’t get to see because they were promised a new bull market.”
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