Spot Market Buying and Impending Short Liquidations Drive Bitcoin to $69K

On April 4, Bitcoin witnessed a gain of 6%, climbing from the level of $65,000 to as high as $69,000. This was due to the fact that traders anticipated that short liquidations would soon take place  

BTC reached a high of $69,328, which resulted in bullish purchasers resolving a chart "inefficiency" that had occurred as a result of recent negative movement. Bitcoin's price has fallen slightly to $67,600 at the moment, resulting in a gain of 3% over the course of the last twenty-four hours.  

It was observed by traders that the rally was the result of buying on the spot market rather than buying derivatives. Both the bid and spot premiums in the spot market were consistently high, which is an indication of robust demand  

A notable trader by the name of Skew underlined that the momentum needs to continue for a longer period of time than just a few hours in order to bring about change that is long-lasting.  

Those who were shorting Bitcoin may potentially run into issues if the price of Bitcoin soared. According to the statistics provided by Coinglass, a liquidity wall equivalent to $32.7 million was removed as Bitcoin surpassed the $68,620 level  

Bitcoin continued to confront substantial resistance near the $69,000 mark, which serves as the previous all-time high in late 2021. This was the case despite the fact that Bitcoin saw a recovery.  

A jump in the price of Bitcoin occurred at the same time that Jerome Powell, the Chair of the Federal Reserve, announced that interest rate reductions will occur before the year 2024 came to a close.  

Jobless claims in the United States also came in higher than expected, which may encourage the Federal Reserve to reduce interest rates. With this dovish tone, risk assets such as Bitcoin and other cryptocurrencies are advantageous.  

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