Bitcoin Maintains Upward Surge, Nears $40,000 as Shorts Liquidated
Summary:
Bitcoin (BTC) hovered around $40,000 on December 3, maintaining a steady upward momentum. A surge over the weekend drew BTC prices to new highs for 2023. Contrary to speculation that spot buyers were needed to sustain this momentum, an unexpected surge in Bitcoin and altcoins swiped out prior resistance. Amid the surge, around $30 million in BTC shorts were liquidated on two consecutive days. As BTC approaches $40,000, market stakeholders are focusing on bullish indications on broader timelines. Bitcoin's price behavior is largely following the patterns observed in past bull markets.
On December 3, Bitcoin (BTC) remained within the vicinity of $40,000, following a weekend surge that signified a strong upward movement. Insights from Cointelegraph Markets Pro and TradingView showed a substantial increase in BTC prices, reaching record highs for 2023 at $39,730. This positive momentum sustained from previous days where BTC topped $39,000 for the first time since mid-2022.
Prior to the weekend, discussions suggested that spot buyers were necessary to keep the momentum going as the Wall Street trading week winded down. However, an unexpected surge in Bitcoin and altcoins swept away earlier resistance. Renowned trader Skew, as part of the X (formerly Twitter)'s coverage, posited that some entity had apparently cleared all shorts on numerous pairs.
This action cast some doubt over BTC’s price behavior for the coming weekly opening. CME Bitcoin futures wrapped up the week at $39,225 leaving a gap to the spot price that usually would be “filled” with a decrease. Yet, analyst Daan Crypto Trades signaled that this time may see a different outcome.
Daan Crypto Trades suggested that when BTC displays a robust trend (either down or up) and trades at yearly highs, there are usually weekend movements that outpace several people, crafting a gap that isn’t closed until weeks later, if ever. He advised against using the CME price in such strong trending environments. He also agreed that the area around the Friday closing price presented an opportunity to ensnare shorters.
Statistics from CoinGlass evidenced that about $30 million in BTC shorts were liquidated on both December 1 and December 2. As BTC approaches $40,000, market stakeholders have started focusing on bullish indicators on extended timelines.
Alan Tardigrade, a well-known Twitter commentator, stated that BTC/USD was significantly out of a lower channel that was operational from BTC’s highest-ever peak of $69,000 in November 2021. Fellow commentator BitQuant, well-known for his optimistic views on Bitcoin, expects a return to these highs before a correction might occur. Both of these observations follow patterns from previous Bitcoin bull markets.
In September, BitQuant had predicted that BTC/USD would surpass record highs before the upcoming block subsidy reduction in April 2024, which is only four months away. Keep in mind, however, that this article does not constitute investment guidance or advice. All trading and investment decisions pose certain risks, and readers should duly conduct their own research before making any decisions.
Published At
12/3/2023 12:26:03 PM
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