Key Points
- Bitcoin (BTC) experienced significant volatility on April 19 due to geopolitical unrest in the Middle East.
- Despite the market turbulence, Bitcoin managed to rebound from a seven-week low.
On April 19, Bitcoin (BTC) encountered a sudden fluctuation due to the geopolitical instability in the Middle East.
This instability had a direct impact on financial markets, causing Bitcoin to dip to a seven-week low of $59,630 after the daily close on April 18.
Market Reactions
The dip was in response to escalating tensions between Iran and Israel, which have had a significant effect on Bitcoin’s value this month, leading to a significant drop from $70,000.
However, amid speculation that the situation may not escalate further, Bitcoin staged a remarkable recovery from its lows, hitting local highs of $65,190.
Noted trader Skew observed that both long and short Bitcoin positions were affected by the volatility.
He stated that current spot demand was driving the recovery, with “sizable” bids filled during the dip below $60,000.
Shorters’ Surprise
Data from CoinGlass, a monitoring resource, revealed the extent of shorters’ surprise, with sell-side liquidity between $64,000 and $65,000 being taken instantly.
In the last 24 hours, total cross-crypto short liquidations stood at $138 million.
Despite the focus on short-term price movements, Bitcoin’s imminent block subsidy halving has received little attention.
However, the market seems to have formed a baseline support level around the recent lows, with anticipation for a potential rally slowly returning.
Crypto Ed, creator of CryptoTA, stated that downside targets had been hit, leaving room for a sustained recovery.
He believes that if there is no more significant news from the Middle East, Bitcoin could start its next upward trend and experience a relief/halving rally.
