Crypto traders are now focusing on the $25,000 level for Bitcoin, below which options positioning suggests another cascade of liquidations could hit. 

“With limited catalysts to push Bitcoin higher in the short term, a fall below $25,000 could put bears in charge, and if the rout in global risk assets continues, Bitcoin could face further downside,” said Josh Gilbert, market analyst at trading and investing firm eToro.

A Wall Street Journal report citing documents that Elon Musk’s SpaceX has sold off its Bitcoin holdings after writing down $373 million also weighed on sentiment. It wasn’t clear from the Journal report when SpaceX had sold its Bitcoin.

Eoin Treacy's view

Bitcoin is volatile. It is prone to large moves and these are to be expected when dealing with the asset. That means position sizing has to take account of the potential for volatility. The price is now testing the region of both the 200-day and 1000-day MAs as well as the upper side of the underlying base formation. This is a major decision point for the price.


The next halvening will be in April 2024. That will halve the reward for each new block successfully created. The price began to rally about a year before the last halvening in May 2020 but enthusiasm ebbed about six months ahead of the event before beginning to rebound about three months ahead of the event.
The July 2016 halvening saw the price break higher eight months early and range until a month before the event. The halvening itself spurs enthusiasm because it burnishes bitcoin’s limited supply credentials. That’s generally when the biggest moves occur.

The break higher in March was a meaningful event and some volatility is to be expected over the coming months, and potentially into the beginning of 2024. The halvening will increase the cost of producing new tokens and that has historically supported prices. It is also worth remembering that each of the big moves higher following a halvening have been associated with a surge of new money creation. It is possible we could see rates coming down and money supply increasing by the time we get to June 2024.