March 5, 2024

Bitcoin ignores US jobs data as BTC price dip puts $28K support at risk

Bitcoin (BTC) recovered from new 10-day lows at the April 20 Wall Street open as the United States jobs data boosted investor confidence.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC price: “Lights out” at $28,000?

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reversing upward after hitting $28,360 on Bitstamp.

Amid an ongoing correction, the pair nonetheless failed to reclaim even $29,000 as support as U.S. unemployment data hinted that tighter financial conditions were working to cool inflation.

Spot gold became the main risk asset beneficiary, climbing back above $2,000 on the day.

XAU/USD 1-hour candle chart. Source: TradingView

U.S. equities opened higher but subsequently reversed their uptick, with the S&P 500 and Nasdaq Composite Index down 0.6%.

With BTC/USD circling $28,800 at the time of writing, popular Twitter trader and analyst Adam warned over the current range failing to hold.

“This seems like a ‘lose this level, and it’s lights out’ type of scenario,” he admitted alongside a chart showing the support range.

“Participation-wise, at lows pretty muted for my liking to get aggressive long here. Happy to buy reclaim above local S/R.”

BTC/USD annotated chart. Source: Adam/Twitter

Fellow trader Pierre, meanwhile, eyed a retest of a “no-trade zone” extending down to $27,000.

An additional post explained the likely upside and downside targets should BTC/USD fail to preserve a trend in place for multiple weeks on daily timeframes.

Data from the Binance order book showed bid liquidity thinning below spot an hour before the jobs data, with the nearest substantial support now at $28,000.

“Note: Local support just got rugged,” monitoring resource Material Indicators, which produced the data and uploaded it to Twitter, wrote in part of accompanying commentary.

“Some was placed to absorb a dump just above $28k. If it gets hit, expecting $28k to get rugged.”

BTC/USD order book data (Binance). Source: Material Indicators/Twitter

Crypto liquidations cool after 2023 record

With funding rates negative, long liquidations took a breather on the day after April 19 saw the largest tally of 2023.

Related: Can Bitcoin reclaim $30K? Watch these BTC price levels next

According to data from Coinglass, cross-crypto long liquidations on that date totaled $262 million, with the April 20 number at just $34 million.

Crypto liquidations chart. Source: Coinglass

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.