Bitcoin Ignores US Jobs Data As BTC Price Drop Threatens $28K Support
Bitcoin (BTC) recovered from fresh 10-day lows at the open on Wall Street on April 20, as US jobs data boosted investor confidence.
BTC Price: ‘Lights out’ at $28,000?
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reversed higher after hitting $28,360 on Bitstamp.
Amid an ongoing correction, the pair failed to reclaim even $29,000 in support as US unemployment data suggested that tighter economic conditions were working to cool inflation.
Spot gold was the main beneficiary of risk assets, climbing back above $2,000 on the day.
US stocks opened higher but then reversed their gains, with the S&P 500 and Nasdaq Composite Index down 0.6%.
With BTC/USD around $28,800 at the time of writing, popular Twitter trader and analyst Adam warned that the current range was not holding.
“This seems like a ‘lose this level and it’s lights out’ type of scenario,” he admitted next to a chart showing the support area.
“Participation-wise, at low points quite subdued for my taste to get aggressive long here. Happy to buy reclaim over local S/R.”
Fellow trader Pierre, meanwhile, saw another test of a “no-trade zone” extending down to $27,000.
An additional post explained the likely upside and downside targets if BTC/USD fails to maintain a trend in place for several weeks on daily time frames.
Data from the Binance order book showed bid liquidity thinning below spot an hour ahead of the jobs data, with the nearest significant support now at $28,000.
“Note: Local support just got robust,” monitoring resource material indicators, which produced the data and uploaded it to twitter, wrote in part of the associated comment.
“Some were positioned to absorb a dump just above $28k. If that gets hit, expect $28k to be robust.”
Crypto liquidations cool off after record in 2023
With negative funding rates, long liquidations took a breather the day after April 19 was the biggest number in 2023.
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According to data from Coinglass, long cross liquidations on that date totaled $262 million, with the April 20 figure 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.
