Key Takeaways
- Bitcoin repeatedly tested $75,000 on April 16, resulting in $137 million in total trader liquidations.
- Coinglass data shows 8,061 traders were liquidated as BTC price volatility exceeded 2.94% in 24 hours.
- MEXC Research analyst Shawn Young predicts bitcoin could reclaim $85,000 by the end of April.
Geopolitical and Economic Drivers
Bitcoin breached the $75,000 mark several times in the last 24 hours as the cryptocurrency continued to hold on to gains initially made on April 13. As shown on the daily chart, bitcoin twice surpassed the mark on Wednesday evening, but its momentum stalled each time amid a wave of selling pressure.
However, a few hours before midnight, the top cryptocurrency breached the mark again before retreating slightly to consolidate near the threshold. By 5 a.m. EST, a fresh volatile session commenced as the price plunged to $74,300, only for the cryptocurrency to rally back to $75,000. The same price action repeated between 9:30 a.m. and 12:15 p.m., but this time, bitcoin plummeted to an intraday low of $73,309 before a quick surge saw it nearly tap the $75,000 resistance again.
At the time of writing (1:30 p.m. EST), bitcoin is in another downtrend, trading just above $74,200—a marginal gain from its price at the same time yesterday. The cryptocurrency’s nearly flat performance left its market capitalization largely unchanged at $1.48 trillion.
While reports of possible U.S.-Iran talks seemingly influenced price action, non-war narratives—such as underwhelming U.S. jobless claims and exchange-traded fund inflows—were also determinants.
Bitcoin’s topsy-turvy price action left traders shorting and longing the cryptocurrency with nearly identical losses. Coinglass data showed approximately $70 million in overleveraged long positions on bitcoin had been liquidated in 24 hours, versus $67 million in shorts. On a day when price volatility exceeded 2.94%, 8,061 traders were liquidated; the largest single liquidation was $9.7 million.
The Path to $85,000
Meanwhile, bitcoin’s recent breach of the $76,000 mark has sparked debate on what to expect next for an asset class that ended the first quarter in the red. Shawn Young, chief analyst at MEXC Research, became the latest expert to voice optimism about prospects in the coming weeks.
“As with previous geopolitical tensions, the crypto market, led by bitcoin, eventually gets to price in the uncertainty of the war,” Young said. “This way, a sustained tension may now have little or no impact on price movement. With the negotiations in the U.S.-Israel-Iran war continuing, market sentiment is tilted toward a positive resolution, a possibility that has pushed the price of bitcoin above the $76,000 mark.”
Young added that despite the short-term price breakout, bitcoin is still trading below “optimal ranges” that future updates might reshape.
With investors acquiring over 250,000 bitcoin in the past 30 days, a unique shift in the role of the asset as a store of value has been initiated. However, despite the likelihood of the conflict in the Middle East being resolved, a complication in the negotiation process may derail the gains of the past four days.
While concessions are inevitable, Young suggests that if nothing disruptive occurs, bitcoin could easily reclaim the $85,000 mark by the end of April. This month is historically positive for the cryptocurrency, with an average growth of 31%. “If history repeats itself, a new support level may be formed at $85,000,” Young added.
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