BTC price dives 3% in minutes as ‘deep correction’ grips crypto market

BTC price dives 3% in minutes as ‘deep correction’ grips crypto market

Market Analysis
April 20, 2023 by secret
63
Bitcoin (BTC) abruptly reversed gains on April 19 as a cascade of long liquidations sent BTC/USD plummeting lower. BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView Bitcoin sees “beautiful” retracement Data from Cointelegraph Markets Pro and TradingView followed the pair as it made lows of $29,015 on Bitstamp.  The sudden move followed an equally strong rebound above
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Bitcoin (BTC) abruptly reversed gains on April 19 as a cascade of long liquidations sent BTC/USD plummeting lower.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin sees “beautiful” retracement

Data from Cointelegraph Markets Pro and TradingView followed the pair as it made lows of $29,015 on Bitstamp. 

The sudden move followed an equally strong rebound above the $30,000 mark the day prior, with bulls ultimately unable to preserve higher levels.

As volatility returned, Bitcoin thus fell to its lowest since April 10 as the upside saw its latest challenge.

“Deep correction on the markets, as Bitcoin can’t hold at $29,700-29,800 and shoots downwards through a cascade of liquidations,“ Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.

BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter

Hours prior, monitoring resource Material Indicators had flagged changing conditions on the Binance order book, arguing that the result could still swing both ways, with either bulls or bears profiting.

Among traders, some participants, such as bullish trader Crypto Kaleo, remained optimistic.

“Remember dips are gifts,” he told Twitter followers, calling the retracement “beautiful” for tagging the range lows.

Longs “squeezed” as liquidations mount

Conditions were ugly for those long BTC, with liquidations stacking up rapidly.

Related: BTC price heading under $30K? 5 things to know in Bitcoin this week

At the time of writing, total crypto long liquidations for April 19 stood at around $175 million on platforms monitored by data resource Coinglass.

Crypto liquidations chart. Source: Coinglass

These followed a painful day for shorts as BTC/USD returned above $30,000.

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.