Bitcoin price retargets $29K after Mount Gox panic liquidates $320M
Bitcoin (BTC) returned to familiar territory on April 27 as the panic over alleged Mt. Gox and US government transactions faded.
“Rough” price action keeps Bitcoin traders cautious
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading near $29,000 on Bitstamp, up almost $2,000 from the previous day’s low.
Snap volatility had started after the Wall Street open when the bull’s journey to $30,000 was brutally interrupted by fears that BTC from wallets controlled by the US government and entities related to defunct exchange Mt. Gox was on the move.
As Cointelegraph reported, the claims turned out to be false, but not before wiping out a large chunk of open interest from the derivatives markets and sending BTC/USD down 7%.
A subsequent recovery returned the pair to $29,500 before the consolidation started.
Reacting, popular trader Jelle asked Twitter followers to filter out curveballs on short notice.
“Bitcoin higher time frame direction is clear – everything else in the meantime is noise,” he wrote on the day.
“It’s okay to trade the volatility, but stay focused on the bigger picture. Above $30,000, targets increase quickly.”
Jelle added that he was “not sure” of the short-term course, but that the destruction of leveraged positions was a “generally good sign” of market strength.
Fellow trader Crypto Tony was more cautious, choosing to wait for more signals before entering the market.
“$27,700 is the level I’m looking at today for a short position. I have to see weakness first to get into this, but even a long here to me looks risky,” he tired.
“The PA is rough, so sitting out is not a bad game and focusing on some stronger alters.”
Trader Muro focused on $29,500 as the make-or-break zone for Bitcoin, with acceptance or rejection at that level key to determining trend direction.
$BTC mind
Looking at 29500 for either rejection and a major correction (blue drawing)
or consolidation above 29500 would indicate a move higher for me (red) pic.twitter.com/ExWwp6kxZG
— Muro (@MuroCrypto) 27 April 2023
Traders wiped out in BTC price downmove
Data from monitoring resource Coinglass, meanwhile, showed the extent of the panic among market participants.
Related: Bitcoin Price Could ‘Easily’ Reach $20K In Next 4 Months – Philip Swift
On April 26, both shorts and longs suffered as Bitcoin liquidations passed $150 million. Cross-crypto liquidations totaled over $320 million.
Observers noted the intense reaction to the news event especially on lower timeframes, among them contributors to the on-chain analysis platform CryptoQuant.
The second highest peak of liquidations at position Long in just one hour in 2023
About $36.5 million in positions were liquidated in the last hour
As of today (26th) alone, over $65 million has been liquidated so far#BTC #Bitcoin pic.twitter.com/HweYWAF5GD
— Gaah (@gaah_im) 26 April 2023
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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.
