Bitcoin (BTC) experienced a 6% gain on April 4, surging from the $65,000 level to as high as $69,000, as traders anticipated impending short liquidations.
Bitcoin (BTC) experienced a 6% gain on April 4, surging from the $65,000 level to as high as $69,000, as traders anticipated impending short liquidations. BTC reached a high of $69,328, which saw bullish buyers addressing a chart "inefficiency" following recent downward movement. Currently, Bitcoin has retraced slightly to $67,600, clocking in a 3% gain in the past 24 hours.
Traders noted that the rally was driven by spot market buying rather than derivatives. The spot market displayed strong bid and spot premiums, indicating solid demand. Skew, a prominent trader, emphasized that the momentum needed to persist for more than just a few hours to bring about lasting change.
As prices rose, those shorting BTC could potentially face difficulties. A $32.7 million liquidity wall was taken out as BTC crossed the $68,620 mark, according to Coinglass data. Despite the resurgence, Bitcoin still faced significant resistance at the $69,000 level, which served as the previous all-time high in late 2021.
The surge in Bitcoin prices came as the Federal Reserve Chair, Jerome Powell, said that interest rate cuts would come before the end of 2024. The US jobless claims also came in higher than expected, which could prompt the Fed to cut rates. This dovish tone favors risk assets like Bitcoin and cryptocurrencies.
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