Bitcoin (BTC) crossed above the $30,000 mark on April 18, causing a flurry of activity and volatility before the Wall Street open. BTC/USD added $500, marking gains of more than 3% for the day. This move erased intraday losses and came as a relief to traders who were previously worried about the $30,000 support remaining as longer-term resistance. Before crossing this threshold, Binance order book activity was being monitored closely by Material Indicators, which identified bid liquidity moving closer to the spot price. The largest class of high-volume traders, known as “mega whales,” were responsible for the upward momentum, according to a subsequent update.
Reacting to this price action, Michaël van de Poppe, founder and CEO of trading firm Eight, was optimistic, stating, “There we go for Bitcoin. Breaks through $30K, which means we’re back in the range.” He tweeted this alongside a chart showing key levels, and suggested that a retest at $29.7K would suit continuation towards new highs and towards $40K. While further volatility was a possibility on lower timeframes ahead of the Wall Street open, those banking on further downside were already feeling the pressure. Data from Coinglass revealed that there had been $16 million of BTC short liquidations on the day.
Altcoins felt the benefits of this sudden turnaround, with Ethereum (ETH) up 2% on the day. Having successfully preserved $2,000 as support, ETH headed back towards the top of its intraday trading range. The bulls’ target to break remained at $2,140 from April 16, representing ETH’s highest level since May 2022. Ether’s 15% gains versus Bitcoin since the Shapella upgrade had also not gone unnoticed.
This news marks a welcome development for the cryptocurrency market, which has been experiencing volatility and downward trends in recent weeks. While it may be too soon to predict a complete reversal of these trends, the positive movement of BTC and ETH represents a promising sign of growth and stability. As always, traders and investors should exercise caution and carefully consider their options before making any decisions based on these developments.