Bitcoin price retargets $29K after Mt. Gox panic liquidates $320M
Bitcoin (BTC) returned to a familiar range on April 27 as panic over alleged Mt. Gox and United States government transactions faded.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD traded near $29,000 on Bitstamp, up nearly $2,000 from the prior day’s low.
Snap volatility had kicked in following the Wall Street open as bulls’ trip to $30,000 was rudely interrupted by fears that BTC from wallets controlled by the U.S. government and entities related to defunct exchange Mt. Gox were on the move.
As Cointelegraph reported, the claims turned out to be false, but not before wiping a large slice of open interest from derivatives markets and sending BTC/USD down 7%.
A subsequent recovery returned the pair to $29,500 before consolidation kicked in.
Reacting, popular trader Jelle called on Twitter followers to filter out short-timeframe curveballs.
“Bitcoin higher timeframe direction is clear - everything else in the meantime is noise,” he wrote on the day.
Jelle added that he was “not sure” on short-term price trajectory, but that the destruction of leveraged positions was a “usually a good sign” for market strength.
Fellow trader Crypto Tony was more cautious, choosing to wait for further cues before entering the market.
“$27,700 is the level i am watching close today for a short position. I need to see weakness first to get into this, but even a long here for me looks risky,” he stated.
Trader Muro focused on $29,500 as the make-or-break zone for Bitcoin, with acceptance or rejection at that level key to determining trend direction.
$BTC thoughtsWatching 29500 for either rejection and a bigger correction (blue drawing)or consolidation above 29500 would indicate a move higher to me (red) pic.twitter.com/ExWwp6kxZG
Data
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