Bitcoin BTCUSD Surges Past $4,000 in Daily Gains
“Solid spot bid” propels Bitcoin $4,000 higher
Bitcoin made a significant move on April 4, surpassing $4,000 in daily gains as traders kept a close eye on impending short liquidations. The price of BTC reached $69,328 on Bitstamp, marking an almost 5% increase from the day’s low. Market observers were impressed by the bullish momentum, with many attributing the surge to a “solid spot bid” and spot market buying rather than derivatives.
Spot market buying drives rally
Popular trader Daan Crypto Trades commented on the rapid price increase, noting the efficiency in filling the gap left by recent downside movement. Fellow trader Skew also highlighted the spot-driven price action, emphasizing the need for sustained momentum to effect lasting change in the market.
Short BTC positions face challenges
As Bitcoin’s price continued to rise, traders holding short positions on BTC could soon face difficulties. Data from CoinGlass showed a significant amount of liquidity being taken out as BTCUSD passed $68,620, indicating potential short liquidations in the near future.
$69,000 remains a key price focus
Despite the impressive rally, $69,000 remained a crucial price level for Bitcoin, as it was the site of the old all-time high in late 2021. Traders and analysts pointed to the 200-period exponential moving average on 4-hour timeframes as a key support level, with many calling for a close above $71,000 to confirm further upside potential.
Importance of limit buying
Analysts emphasized the importance of limit buying at the $69,000 mark to gauge the actual demand for higher prices. Dips from this level would provide valuable insights into market sentiment and potential price movements in the near future.
Disclaimer: This article does not provide investment advice. Readers are advised to conduct their own research before making any investment decisions.
