Bitcoin (BTC) saw a significant increase of $4,000 in daily gains on April 4, as traders anticipated short liquidations. The price of BTC reached $69,328 on Bitstamp, impressing market observers who saw bulls correcting a chart “inefficiency” following recent downward movement.
Popular trader Daan Crypto Trades noted that Bitcoin was breaking higher and filling the inefficiency in a rapid manner. Fellow trader Skew also observed that the rally was driven by spot market buying rather than derivatives. However, Skew emphasized that the momentum needed to be sustained for more than just a few hours to bring about lasting change.
Despite the recent increase, those shorting BTC could face problems as prices continue to rise. Monitoring resource CoinGlass reported that $32.7 million of liquidity was taken out as BTC/USD surpassed $68,620.
The $69,000 price level remains a significant focus for Bitcoin. It was the site of the cryptocurrency’s all-time high in late 2021. Noting the strong support provided by the 200-period exponential moving average on 4-hour timeframes, trader and analyst Josh Rager emphasized the need for BTC to close higher above $71,000.
Skew described the $69,000 mark as important and stated that dips from this level would be crucial in gauging the actual demand for higher prices.
It is important to note that this article does not provide investment advice or recommendations. Readers are encouraged to conduct their own research before making any investment or trading decisions.