Bitcoin is still struggling to recover from last weekend’s 15.8% decline to $50,931. During the downturn, long positions in Bitcoin worth $4.87 bln were forcibly liquidated on eight trading floors, including those on the Binance exchange valued at $1.97 bln. The daily volume stood at 124,880 BTC (less than in February 2021). The price action bounced 10.2% to $56,150 on the day.
The triggers for the pullback maybe have been two media reports:
At the time of writing, Bitcoins were exchanging hands at $55,865. Sellers were unable to push the price action below $50,427 (March 25 low). According to technical analysis, the uptrend has weakened, but is not broken. The crypto market is supported by positive news. Losses will be pared at $53,350.
The price action has recouped 50% of the decline from $64,854 to $50,931. Buyers are left licking their wounds after the forced liquidation and stop order slippage. They should be expected to jump back in after the price action rises above $58,600. If BTC keeps trading below $58.6k by 10:00 UTC on April 21, then players should get ready for a drop to the $50,931 low. Positive factors include a weakening of the dollar across the board on FX markets amid upside in equity indices, with the S&P 500 retracing to its all-time high of 4,170.75.