With BTC’s price recovering to a key springboard level, analysis suggests that Bitcoin bulls still have an opportunity to turn the situation around.
“Unusual” spot sell raises BTC price concerns.
Cointelegraph Markets Pro and TradingView data tracked BTC/USD as it crept towards $29,500 on Bitstamp.
Earlier in the day, the duo lost $1,000 in minutes as over $200 million in long liquidations preceded a return of less than $30,000.
Reactions attributed the price movement, which began with a 16,000-BTC market sale on Binance, to a probable upcoming news event, which did not materialise at the time of writing.
Market players remained calm, believing that crucial support levels remained in place despite a healthy retreat.
“A move to 28k is normal/healthy,” prominent trader Credible Crypto said on Twitter.
“Personally am still out of a position currently. Rather wait for some solid PA to form before rushing in.”
Caleb Franzen, Senior Market Analyst at Cubic Analytics, set his sights on a slightly lower number, noting that support could be retested in the CME Group bitcoin futures market.
At around US$27,000, this is a ‘gap’ in the futures market he said from mid-2022 that spot prices could ‘fill’ in the last few weeks.
“CME futures have yet to retest this critical support and resistance zone, but it came very close this morning,” he commented.
“I think bulls should be happy to get an opportunity to reload in this range, if/when we get there. No need for panic/concern yet.”
Are Bitcoin bulls running out of time?
Looking at the upside potential, monitoring key indicators for the resource suggested that a sharp clawback above $30,000 is definitely possible if the bulls can regain control.
With everything hanging at $29,500, he claimed that was the very focus level for BTC/USD at the time of writing that day.
“BTC pushed about $32 million out of the range, leaving an illiquid black hole upwards,” he said, along with pressure from buying and selling liquidity on Binance’s order book.
“If bulls can reclaim $29.5k before ask liquidity returns, there is very little friction between here and the mid $30s.”