Key Takeaways
Bitcoin (BTC) rallied above $72,000 on Tuesday, April 8, as strengthening spot market demand and aggressive buying in derivatives gave bulls the fuel to challenge the key resistance level. The move liquidated over $112 million in short positions in 24 hours, according to data from Coinglass.
“The 30-day spot net volume delta for Bitcoin, which tracks the net difference between market buys and sells, has turned positive on both Binance and Coinbase after persistent selling in February,” one analyst noted. This coordinated shift across major exchanges, with Binance’s 30-day net volume moving average at $43.2 million and Coinbase at $13.88 million, points to renewed investor accumulation.
Data from CryptoQuant adds weight to the move, showing Binance’s cumulative volume delta (CVD) for Bitcoin futures increased by $3.3 billion in April to reach $5.6 billion. This metric, which measures aggressive market orders, indicates stronger buyer conviction than was seen during the previous consolidation phase below $70,000.
The rally to $72,000 represents a critical test for Bitcoin. This level has acted as firm resistance since early February, with rallies on March 4 and March 16 both met by sharp selling from short-term holders. However, data suggests a different pattern this time, with capitulation from this cohort amounting to just 3,000 BTC, a fraction of the 26,000 BTC and 31,000 BTC sold during the prior attempts.
The return of positive net volume on major spot exchanges is a significant structural change. It suggests that long-term accumulation is beginning to absorb the supply that had previously capped price rallies. While overall spot volumes remain lower than in previous cycles, continued outflows from exchanges to private wallets hint that buyers are securing their positions.
The market is also seeing a recovery in profitability. Bitcoin’s net realized profit/loss, on a seven-day moving average, has recovered from a low of negative $2 billion on February 7 to just negative $109 million, approaching a positive reading for the first time since January 22. This reduction in realized losses, combined with reduced selling pressure, creates a more balanced market where buyers can gradually absorb available supply. For the bullish trend to continue, buyers will need to defend the $70,000 to $72,000 zone over the coming days.
The move in Bitcoin comes amid a mixed macroeconomic environment, with a strengthening U.S. dollar and oil prices hitting $110 a barrel. Elsewhere in crypto, Ethereum (ETH) climbed 3.68% to $2,130, though analysts point to high speculation, with futures volume on some exchanges running nearly seven times higher than spot volume. The sustained demand for Bitcoin, despite these headwinds, suggests strong underlying conviction from buyers.
This article is for informational purposes only and does not constitute investment advice.
