The Bitcoin Price Is Showing Signs Of Recovery Following A Tense Night.

Posted on April 20, 2024 3:03 AM
Cryipto News
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Due to the impact of geopolitical tensions in the Middle East on financial markets, Bitcoin experienced sudden fluctuations during the night hours.

Bitcoin price dropped on the eve of the halving. After the daily closing on April 18th, the BTC price fell to $59,630, the lowest level in seven weeks. According to Cointelegraph, following a modest recovery the previous day, this recovery was short-lived due to the rapid market reaction to recent developments. While rumors suggested that the situation would not worsen further, BTC/USD showed an impressive recovery from low levels, reaching $65,190.

In his recent post on X (formerly known as Twitter), renowned analyst Skew mentioned that both long and short BTC positions suffered losses due to volatility. In a part of his latest post, he stated, "Short positions got liquidated and now there is more interest in long positions, meaning longs are opening up." Skew also added that spot demand is starting to recover at the time of writing, and emphasized that this recovery was only within a one-hour timeframe. He noted that purchases made at levels below $60,000 were "quite significant."

According to recent data from the CoinGlass monitoring source, it reveals the extent of the shorts' confusion. Liquidity between $64,000 and $65,000 disappeared suddenly, and beyond a new order wall at $61,200, there is no significant support near the spot price.

Trader Credible Crypto, in his comment on the X platform, stated, "It doesn't seem significant, but $100 million bids for BTC have been moved below to support the price." He also added, "If you've hit bottom because of a news headline, good luck on your rebound."

In the last 24 hours, total short transaction liquidations reached $138 million.

The Battle for Bitcoin's Weekly Close Begins

While there is so much focus on short-term price movements, the scant attention given to Bitcoin's upcoming halving is noteworthy. Investment firm QCP Capital, in the latest "Asia Morning Color" market update on their Telegram channel, stated, "Today we are on the eve of Bitcoin's halving, and the market seems to have formed a clear support level around the lowest levels we've seen recently."

With less than 15 hours until the halving, expectations for a rally are slowly reemerging in the market.

Trader Jelle, referring to the upcoming weekly candle close, summarized the current situation, stating, "The 'save the week' operation started early this week."

CryptoTA's founder, Crypto Ed, noted the possibility of a recovery in Bitcoin following recent declines. In a statement to his followers on the X platform, he said, "Okay, let me see the bottom here!" He then added: "IF (big IF) no more major news comes from the Middle East, I believe we are at the bottom and BTC has started its next leg. This means we are in for a nice relief and halving rally!"