Bitcoin (BTC) recovered from new ten-day lows at the April 20 Wall Street open as United States jobs data boosted investor confidence.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBTC 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.
XAU/USD 1-hour candle chart. Source: TradingViewU.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.”
BTC/USD annotated chart. Source: Adam/ TwitterFellow 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, 2023An 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, 2023Data 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.”
BTC/USD order book data (Binance). Source: Material Indicators/ TwitterCrypto 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.
Crypto liquidations chart. Source: CoinglassMagazine: Bitcoin in Senegal: Why is this African country using BTC?
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.
