Key Points
- Bitcoin (BTC) price surged by $4,000 on April 4, reaching $69,328 on Bitstamp.
- The rally was driven by spot market buying, with $32.7 million liquidity taken out as BTC/USD surpassed $68,620.
On April 4, Bitcoin (BTC) experienced a significant price increase of $4,000. The BTC price action was tracked and it was found that the price hit $69,328 on Bitstamp.
This surge, an almost 5% increase from the day’s low, caught the attention of market watchers. They identified this as a bullish response to a chart “inefficiency” following a recent downside.
Spot Market Buying Drives the Rally
Traders have noted that the rally was largely driven by spot market buying, rather than derivatives. This was clear from the spot premium and spot bid.
However, it was pointed out that this momentum needed to be sustained for more than just a few hours to bring about lasting change. There was also a warning that short BTC traders could face challenges as prices continued to rise.
Bitcoin Faces Resistance at $69,000
Despite the price surge, significant resistance was noted at the $69,000 mark, the previous all-time high for BTC/USD from late 2021.
Josh Rager, a popular trader and analyst, highlighted the strong support provided by the 200-period exponential moving average (EMA) on 4-hour timeframes. However, he insisted that the price needs to close higher above $71,000 again.
Data from the largest global exchange, Binance, showed the $69,000 mark as a crucial point. It was suggested that any dips from this point would be significant in assessing the level of limit buying and the actual demand for higher prices.
