It remained near the lower end of its trading range until October 8 after the bulls were unable to offset losses from macroeconomic factors.
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View
$20,000 disappears over the weekend
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is trading at around $19,500 at the time of writing.
A drop of $19,340 appeared on Bitstamp the day before the consolidation began.
The pair saw a rapid, albeit expected, decline accompanying US unemployment data, as cryptocurrency markets copied stocks while the US dollar rallied.
US Dollar Index (DXY) 1-hour candles chart. Source: Trading View
Mikael van de Poppe, founder and CEO of Trading Eight, described the unemployment rate as “far lower than expected.”
He added that “economic data this week was mixed”:
“Positive in the latter part of the week as unemployment fell from 3.7% to 3.5% while job vacancies and PMI data were weak earlier this week. Attention is now focused on the reporting season, PPI and CPI next week.” .
Meanwhile, material indicators for the online analytics resource pointed to the continued importance of Bitcoin’s 50-day moving average as resistance.
At the moment at just under $20,000, the 50MA was also joined by the 21MA after the unemployment data was released, the latter rebounding later.
“Bitcoin has seen 4 consecutive failures from the 50-day moving average this week, and in today’s positive US unemployment report, the bulls are back at $20K R/S volatility, 2017 high, and the 21-day moving average, Physical indicators concluded.
BTC/USD (Bitstamp) candlestick chart for 1 day from 21, 50MA. Source: Trading View
The number of liquidations increases as the market burns long deals
Meanwhile, in a sharp return to volatility, on October 7th, bitcoin-buying traders suffered a liquidation of about $23 million.
Related: BTC Price Still Not at ‘Maximum Pain’ – 5 Things to Know About Bitcoin This Week
Coinglass data confirmed that the total number of long cryptocurrency liquidations for the day was close to $63 million, with specialists adding another $19.5 million to the number.
Cryptocurrency filter table. Source: Coinglass
Last week, Cointelegraph reported that $19,000 is below the current range, a major breach that the analysis fears will lead to further unwinding.
As such, analytics platform Whalemap concluded that whale buying and selling levels were key, with a potential price cut target of $12,500 in the event of a loss of support.