Bitcoin Value Recovers Amid Middle East Tension; Market Anticipates Potential Rally
Summary:
On April 19, Bitcoin's value experienced dramatic fluctuations due to political unrest in the Middle East. The digital currency hit seven-week lows of $59,630, but amid speculations that tensions may not escalate further, Bitcoin recovered reaching local highs of $65,190. Analysts observed that both long and short Bitcoin positions were impacted by the volatility and the recent rebound was mainly driven by spot demand. With Bitcoin's upcoming block subsidy halving receiving surprisingly little focus, analysts note a potential rally in the market.
Bitcoin experienced dramatic fluctuations on April 19, as political instability in the Middle East rippled into the financial sphere. Market data from Cointelegraph Markets Pro and TradingView reveal that the Bitcoin's value dropped to a seven-week low of $59,630 following the daily close of April 18. This drop was linked to escalating tensions between Iran and Israel, a situation which had earlier triggered a significant drop from $70,000 for Bitcoin.
Although a mild recovery had begun the previous day, the progress was quickly undone as the market reacted to the latest news. However, as speculation grew that the geopolitical tensions may not worsen, Bitcoin made a remarkable recovery from its low, achieving local highs of $65,190.
Trading analyst Skew, providing ongoing coverage on social media platform X (formerly Twitter), observed that the volatility was impacting both long and short Bitcoin positions. Skew's latest post revealed an increase in interest from long-position investors and highlighted that the recent rebound, which was less than an hour old at the time of posting, was being driven by spot demand. Bids that were filled during Bitcoin's dip below $60,000 were significant in size, he added.
Meanwhile, data from analytics platform CoinGlass demonstrated the extent of the surprise experienced by shorters. Sell-side liquidity between $64,000 and $65,000 had evaporated instantly, with no noticeable blocks remaining near the spot price, except for a new set of bids at $61,200. Fellow trader Credible Crypto advised caution to those who sold at the bottom due to a current event headline, indicating that reentering the market could be difficult.
CoinGlass' data showed that the total short liquidations from various cryptocurrencies in the past 24 hours was $138 million. Amid all the focus on short-term price movements, Bitcoin's upcoming block subsidy halving surprisingly received minimal attention. However, trading firm QCP Capital noted in an Asia Morning Color market update that the market seems to have established a solid support level around the recent lows ahead of the halving event. The anticipation of a potential rally is slowly creeping back into market conversations.
Looking ahead, trader Jelle notes an early start to the 'save the weekly' operation in reference to the impending weekly candle close. For Crypto Ed, the founder of trading platform CryptoTA, the bottom has been reached, and if the situation in the Middle East stays calm, Bitcoin is poised for a sustained recovery.
Published At
4/19/2024 11:36:26 AM
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