Bitcoin Surges to $44,000, Highest Level Since April Amid Market Optimism
Summary:
Bitcoin's value surged to $44,000 on Dec 5th, marking its highest level since early April 2022. The spike, triggered by Wall Street trading sessions, led to the liquidation of over $100m worth of crypto shorts. Despite concerns about potential manipulation by high-volume traders, optimism remains strong. Analysts suggest that as long as Bitcoin stays above $39K, the probability of it dropping to $30K is very slim.
Bitcoin experienced a surge, reaching $44,000 on December 5 following the Wall Street trading sessions which triggered notable price increase in the cryptocurrency. Bitcoin rose faster than other cryptocurrencies, capturing the $44,001 mark on Bitstamp during the latest round of surge. This signifies a 10% increase in the week-to-date gains and is the highest level the cryptocurrency has reached since the start of April 2022. The figures were a challenge to substantial resistance.
As commented by Rekt Capital, a well-known trader and analyst, $44,000 has been the peak value of a range that has repeated several times since early 2021. “Bitcoin has a history of reclaiming the black level, leading to the possibility of price reaching mid $40,000s. It’s essential to watch for the retest in the meantime,” he further added on a commentary on X (formerly Twitter).
According to CoinGlass, a statistics resource, over a $100 million worth of crypto shorts were liquidated as the cryptocurrency market responded to the latest move. This led to a massive spike in the probability of short liquidation levels recorded by the largest global exchange, Binance.
As various reports indicated, there were worries over potential manipulation by high-volume traders. Analysis earlier had warned this could lead to a massive sell-off to secure profits with the least amount of slippage at the new highs. However, optimism continues to remain strong among others.
“Bitcoin is targeting the $48.5-50.5K marker before halving,” stated Michaël van de Poppe, the Founder and CEO of trading firm, MN Trading. He added further, “Bitcoin has always done this in the past cycles, and it's likely it will repeat here as well. As long as Bitcoin stays above $39K, it's all good. The odds of Bitcoin dropping to $30K are diminishing.”
In addition, commentator Matthew Hyland cited relative strength index (RSI) data suggesting further potential for price increase. However, at the time of writing, the daily RSI remained at 80, indicating overbought conditions, which is into the 10-point range.
Note: This news piece does not include investment advice or recommendations. Every investment or trading move bears risk, and readers should thoroughly research before making any decisions.
Published At
12/5/2023 9:20:12 PM
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