Bitcoin has experienced significant volatility over the past 24 hours, repeatedly testing the $75,000 resistance level before settling around $74,200.
Important points
- Bitcoin repeatedly tested $75,000 on April 16, resulting in a total trader liquidation of $137 million.
- Coinglass data shows that 8,061 traders were liquidated as BTC price volatility exceeded 2.94% in 24 hours.
- MEXC Research analyst Sean Young predicts that Bitcoin could regain $85,000 by the end of April.
Geopolitical and economic factors
Bitcoin continues to maintain its initial gains on April 13, topping the $75,000 level multiple times in the past 24 hours. As shown on the daily chart, Bitcoin rose above that level twice on Wednesday evening, but its momentum stalled each time amid a wave of selling pressure.
However, a few hours before midnight, the top cryptocurrency broke through the mark again and then retreated slightly to hold its value near the threshold. By 5 a.m. ET, the price had plummeted to $74,300, starting a new volatile session, but the cryptocurrency had recovered to $75,000. The same price action was repeated from 9:30 a.m. to 12:15 p.m., but this time Bitcoin plummeted to an intraday low of $73,309 before surging again and nearly approaching the $75,000 resistance.
As of this writing (1:30 p.m. ET), Bitcoin is trending lower again, trading just above $74,200, up slightly from the same price yesterday. Due to the nearly flat performance of cryptocurrencies, the market capitalization remained almost unchanged at $1.48 trillion.
Reports about possible talks between the US and Iran likely influenced the price movement, but stories other than the war were also determining factors, such as overwhelming US unemployment claims and flows into exchange-traded funds (ETFs).
Bitcoin’s dizzying price movements have caused traders to go short and long the cryptocurrency, incurring almost equal losses. About $70 million in overleveraged long positions in Bitcoin were liquidated within 24 hours, compared to $67 million in short positions, according to data from Coinglass. On days when the price volatility was greater than 2.94%, 8,061 traders were liquidated. The maximum single settlement amount was $9.7 million.
Road to $85,000
Meanwhile, Bitcoin’s recent breakout of the $76,000 mark has sparked a debate about what to expect next for the asset class, which ended the first quarter in the red. Sean Young, principal analyst at MEXC Research, became the latest expert to express optimism about the outlook for the coming weeks.
“As with previous geopolitical tensions, Bitcoin-led crypto markets will ultimately price in the uncertainty of war,” Young said. “Thus, continued tensions may have little or no impact on price movements. As US-Israel-Iran war negotiations continue, market sentiment leans toward a positive resolution, the possibility of which has pushed Bitcoin price above the $76,000 mark.”
Young added that despite the short-term price break, Bitcoin is still trading below its “optimal range” and could reform in future updates.
Investors have acquired more than 250,000 Bitcoin in the past 30 days, marking the beginning of a unique shift in the asset’s role as a store of value. But despite the possibility of a resolution to the Middle East conflict, complications in the negotiation process could undermine the gains of the past four days.
Although concessions are inevitable, Young suggests that if nothing disruptive happens, Bitcoin could easily regain the $85,000 level by the end of April. This has been a historically positive month for cryptocurrencies, with an average growth rate of 31%. “If history repeats itself, a new support level may form at $85,000,” Young added.
