Key Points

• Bitcoin (BTC) price surged by $4,000 on April 4, peaking at $69,328 on Bitstamp.
• The surge was fueled by spot market buying, with $32.7 million liquidity withdrawn as BTC/USD crossed $68,620.

On April 4, Bitcoin experienced a notable price spike of $4,000. Analysts observed that the price reached $69,328 on Bitstamp during this surge.

This increase, nearly 5% from the day's low, drew attention from market observers. They interpreted it as a positive reaction to a previous downward trend in the chart.

Spot Market Activity Drives the Surge

Market participants highlighted that the price rally was predominantly fueled by spot market buying rather than derivatives. This was evident from the spot premium and spot bid movements.

However, experts cautioned that this upward momentum would need to be maintained for a longer duration to bring about sustained changes. Additionally, there were warnings for short BTC traders as prices kept climbing.

Resistance Encountered at $69,000 Level

Despite the price jump, notable resistance was observed at the $69,000 level, representing the previous BTC/USD all-time high from late 2021.

Trader and analyst Josh Rager emphasized the strong support indicated by the 200-period EMA on 4-hour timeframes. Nevertheless, he emphasized the necessity of closing above $71,000 for further positive developments.

Information from Binance, the largest global exchange, underlined the significance of the $69,000 level. Analysts suggested that any downward corrections from this point would be crucial in evaluating the level of limit buying and real demand at higher price levels.