Bitcoin (BTC) experienced a significant increase of $4,000 in daily gains on April 4 as traders anticipated the liquidation of short positions. The price of Bitcoin reached $69,328 on Bitstamp, showing an impressive increase of nearly 5% from the day’s low. Market observers were pleased to see bulls correcting a chart “inefficiency” after recent downward movement.
Popular trader Daan Crypto Trades commented on the upward breakout, stating that Bitcoin was quickly filling the inefficiency in the chart. Fellow trader Skew also noted 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 in order to have a lasting impact.
Despite the positive price movement, those who had short positions in Bitcoin could face difficulties as prices continued to rise. Monitoring resource CoinGlass reported that a $32.7 million wall of liquidity was taken out as BTC/USD surpassed $68,620.
The price level of $69,000 remained a significant focus for Bitcoin, as it was the site of the cryptocurrency’s previous all-time high in late 2021. On-chain metrics had previously prevented Bitcoin from returning to its peak, but the recent increase in price showed promising signs. Analyst Josh Rager highlighted the strong support provided by the 200-period exponential moving average (EMA) on 4-hour timeframes and called for even higher levels. He concluded that Bitcoin needed to close above $71,000 to further solidify its upward trend.
Looking at the order book data on Binance, Skew described the $69,000 mark as important and stated that any dips from this level would be crucial in determining the level of demand for higher prices.
It is important to note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research before making any investment or trading decisions.