Bitcoin (BTC) experienced sudden volatility on April 19 as geopolitical tensions in the Middle East affected financial markets. The price of BTC dropped to a seven-week low of $59,630 after the daily close on April 18, following renewed tensions between Iran and Israel. This had a significant impact on Bitcoin, causing it to drop from $70,000.
The previous day had seen a modest recovery, but it was quickly undone as the market reacted to the latest developments. However, there were rumors that the situation might not escalate further, leading to a rebound in BTC/USD. The price reached local highs of $65,190.
Popular trader Skew noted on X (formerly Twitter) that both long and short BTC positions were affected by the volatility. He mentioned that shorts were blown out and more interest from longs was seen. Spot demand was driving the rebound, with sizable bids filled during the drop below $60,000.
CoinGlass, a monitoring resource, revealed that shorters were taken by surprise. Sell-side liquidity between $64,000 and $65,000 disappeared instantly, with a new wall of bids forming at $61,200 to support the upward move.
Total cross-crypto short liquidations for the past 24 hours amounted to $138 million. Despite the focus on short-term price moves, Bitcoin’s upcoming block subsidy halving received little consideration. Trading firm QCP Capital noted that the market had formed a clearly defined baseline support level around the recent lows, signaling a potential rally as the halving approached.
With the weekly candle close approaching, there was anticipation for a sustained recovery. Crypto Ed, the creator of trading platform CryptoTA, stated that downside targets had been hit and predicted a bottom in the market.
It is important to note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research before making any investment decisions.