Bitcoin (BTC) bounced back from its 10-day lows on April 20 as investor confidence was boosted by the release of positive US jobs data. Despite an ongoing correction, BTC/USD failed to reclaim even $29,000 as support. Spot gold, on the other hand, became the main risk asset winner, climbing back above $2,000 on the day. US equities opened higher but subsequently reversed their uptick, with the S&P 500 and Nasdaq Composite Index down 0.6%. At the time of writing, BTC/USD was hovering around $28,800.
Twitter trader and analyst Adam warned earlier that the current range failing to hold could lead to a “lose this level, and it’s lights out” scenario. He admitted this alongside a chart showing the support range. Fellow trader Pierre eyed a retest of a “no trade” zone extending down to $27,000. Data from the Binance order book showed bid liquidity thinning below spot one hour before the jobs data, with the nearest substantial support now at $28,000.
Crypto liquidations cooled after the 2023 record, as funding rates turned negative, and long liquidations took a breather after April 19 saw the largest tally of 2023, according to Coinglass data. On that date, cross-crypto long liquidations totalled $262m, with the April 20 number at just $34m.
The crypto market remains volatile and challenging, as factors such as regulation, government intervention, and environmental concerns continue to impact valuations. Despite the uncertainty, the blockchain technology that drives cryptocurrencies is still in demand as businesses and individuals seek solutions that offer more security, transparency, and efficiency.
Recent developments continue to show the potential for blockchain technology to transform various sectors, with innovations such as decentralised finance (DeFi), non-fungible tokens (NFTs), and smart contracts. DeFi, for example, is revolutionising the banking and finance industry by bringing financial services such as loans, savings, and investments to those who have been excluded from traditional banking. NFTs are transforming the art and collectibles markets, offering a new way to buy, sell, and trade digital assets securely, while smart contracts are cutting costs and improving efficiency in sectors such as supply chain management and real estate.
As the world is becoming increasingly digital, blockchain technology will continue to play a significant role in shaping the future of finance, commerce, and society as a whole. While the crypto market remains unpredictable and volatile, the long-term prospects for blockchain technology and its potential to revolutionise industries are enormous.
Investors and traders should conduct their own research before making any investment decision. Cryptocurrencies are not regulated in many countries, and there is a risk of significant losses due to market volatility. However, with careful consideration and a sound investment strategy, investors and traders can potentially benefit from the opportunities offered by the crypto market.
