Key takeaways
- Bitcoin repeatedly tested $75,000 on April 16, resulting in $137 million in total trader liquidations.
- Data from Coinglass shows that 8,061 traders were liquidated. BTC Price volatility exceeded 2.94% in 24 hours.
- MEXC Research analyst Shawn Young predicts bitcoin could recover $85,000 by the end of April.
Geopolitical and economic factors
Bitcoin crossed the $75,000 mark several times over the past 24 hours as the cryptocurrency continued to hold on to the gains initially made on April 13. As the daily chart shows, bitcoin topped the mark twice Wednesday night, but its momentum stalled each time amid a wave of selling pressure.
However, a few hours before midnight, the summit cryptocurrency crosses the mark again before retreating slightly to consolidate near the threshold. At 5 a.m. EST, a new volatile the session began as the price plunged to $74,300, only for the cryptocurrency to come back to $75,000. The same price action was repeated between 9:30 a.m. and 12:15 p.m., but this time, bitcoin fell to an intraday low $73,309 before a rapid rise saw it almost hit $75,000 resistance again.
At the time of writing (1:30 p.m. EST), bitcoin is in another downtrend, trading just above $74,200, a marginal gain from its price at the same time yesterday. THE cryptocurrency‘s near-flat performance left its market capitalization largely unchanged at $1.48 trillion.
While reports of possible negotiations between the United States and Iran appear to have influenced price developments, non-war narratives, such as disappointing U.S. unemployment claims and exchange-traded fund inflows– were also decisive.
BitcoinThe upside down price action has left both short and long term traders in the market. cryptocurrency with almost identical losses. Coinglass data showed around $70 million in overleveraged long positions on bitcoin had been liquidated in 24 hours, against $67 million of shorts. A day when the price volatility exceeded 2.94%, 8,061 traders were liquidated; biggest single liquidation was $9.7 million.
The Path to $85,000
In the meantime, bitcoinThe recent crossing of the $76,000 mark has sparked debate over what to expect next for an asset class that ended the first quarter in the red. Shawn Young, chief analyst at MEXC Research, has become the latest expert to voice of optimism on the outlook for the coming weeks.
“As in previous geopolitical tensions, crypto market, led by bitcoinends up taking into account the uncertainty of war,” Young said. “In this way, sustained tension may now have little or no impact on price developments. As war negotiations between the United States, Israel and Iran continue, market sentiment is geared toward a positive resolution, a possibility that has driven up the price of bitcoin above the $76,000 mark.
Young added that despite the short-term price breakout, bitcoin is still trading below “optimal ranges” that future updates could reshape.
With investors acquiring over 250,000 bitcoin Over the past 30 days, a unique shift in the asset’s role as a store of value has been initiated. However, despite the likelihood of a resolution to the Middle East conflict, a complication in the negotiation process could derail the gains of the past four days.
Although concessions are inevitable, Young suggests that if nothing disruptive happens, bitcoin could easily reclaim the $85,000 mark by the end of April. This month is historically positive for the cryptocurrencywith an average growth of 31%. “If history repeats itself, a new support level could form at $85,000,” Young added.
