Bitcoin (BTC) experienced a tumultuous day on April 19 as the cryptocurrency fought to regain lost ground. The price of BTC had dropped by $1,000 in just a few minutes earlier that day, accompanied by over $200 million in long liquidations, as the cryptocurrency fell below $30,000. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD crawling back up towards $29,500 on Bitstamp.
The sudden price drop was linked to an “unusual” spot sell of 16,000 BTC on Binance, which triggered suspicion among market participants. Some traders speculated that the sell-off was connected to an upcoming news event, but this failed to materialize at the time of writing. Despite the uncertainty, many market participants remained level-headed, pointing out that important support levels were still present amid a healthy retracement.
Popular trader Credible Crypto wrote on Twitter that a move to $28,000 was “normal/healthy,” while fellow trader Crypto Tony was more cautious, hinting that he expected further downside to ensue next. Trader and analyst Rekt Capital eyed $28,800 as the key level to watch on weekly timeframes. Meanwhile, Caleb Franzen, senior market analyst at Cubic Analytics, pointed to a potential support retest area on CME Group Bitcoin futures markets at around $27,000.
Looking to upside potential, monitoring resource Material Indicators suggested that there was solid potential for a fiery reclaim of $30,000 and beyond if bulls were able to regain control. Everything hinged on $29,500, it argued on the day — exactly the focus level for BTC/USD at the time of writing.
Material Indicators commented alongside a print of buy and sell liquidity on the Binance order book, “BTC flushed about $32M out of the range and left a black hole of upside illiquidity. If bulls can reclaim $29.5k before ask liquidity returns, there is very little friction between here and the mid $30s.”
Despite the volatility, Bitcoin bulls still have an opportunity to turn the situation around, according to analysis. If they are able to regain control, there is potential for the cryptocurrency to surpass $30,000 and beyond. However, market participants should remain cautious and conduct their own research before making any investment or trading decisions.