Bitcoin (BTC) experienced sudden volatility on April 19 as the geopolitical tensions in the Middle East affected financial markets.
The price of BTC dropped to a new seven-week low of $59,630 after the daily close on April 18. This decline was a result of renewed tensions between Iran and Israel, which had a significant impact on Bitcoin, causing a major drawdown from its previous high of $70,000.
The day before, there was a slight recovery in BTC price, but it was quickly undone due to market reactions to the latest developments. However, there were rumors that the situation might not escalate further, leading to an impressive rebound in BTC/USD, reaching local highs of $65,190.
During this period of volatility, both long and short BTC positions were affected. Traders noted that short positions were blown out, while more long positions were opening up. The rebound was primarily driven by spot demand, with significant bids being filled during the drop below $60,000.
Monitoring data from CoinGlass revealed that sell-side liquidity between $64,000 and $65,000 disappeared instantly, leaving a new wall of bids at $61,200 to support the upward movement. The total short liquidations across different cryptocurrencies in the past 24 hours amounted to $138 million.
Amidst the focus on short-term price movements, Bitcoin’s upcoming block subsidy halving received little attention. Trading firm QCP Capital noted that the market seemed to have formed a defined support level around the recent lows, indicating potential for a rally after the halving.
As the countdown to the halving continued, traders started to pay attention to the weekly candle close, referring to it as “Operation ‘save the weekly’.” Some analysts believed that BTC had hit its downside targets and predicted a sustained recovery.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.