Bitcoin Surpasses $42,000 Amid Market Manipulation Speculations; Analysts Predict Upward Trend
Summary:
On December 5, Bitcoin (BTC) crossed the $42,000 mark, prompting skepticism regarding possible market manipulation by high-volume traders, or 'whales'. Trading resource Material Indicators suggested these big traders could be driving prices up to maximize profits from major sell-offs. However, they also projected the upward trend could continue into the next year, stimulated by socio-economic shifts and potential approval of the first U.S Bitcoin spot price exchange-traded fund. Meanwhile, trader Daan Crypto Trades observed decreasing open interest, and social media pundit Moustache predicted Bitcoin's surge to $60,000 in the near future.
Bitcoin (BTC) made a comeback, crossing the $42,000 threshold on December 5, generating concern among some analysts about possible market manipulation. Tracking data from Cointelegraph Markets Pro and TradingView revealed BTC's price recovery, reaching a peak of $42,498 on Bitstamp, outdoing the 19-month high from the previous day. The crypto market's enthusiasm endured despite brief setbacks.
While Bitcoin regained some of its mid-2022 losses, skepticism about the sustainability of its rally continued with focus on the actions of high-volume traders, often dubbed 'whales'. Market analysis platform, Material Indicators, suggested through a post on social media platform X (previously Twitter) that these traders may be orchestrating higher prices intentionally in order to capitalize on an upsurge with minimal slippage. The closer the liquidity is to the proposed selling point, the more profitable a major sell-off would be.
Material Indicators pointed out a similar pattern in the past with a $50M purchase barrier at $35k. Currently, a consequent $50M is stacked at $38.5k, a situation it described as a "strategically arranged distribution show." Although a replay to $38,500 was seen as unlikely, Material Indicators cautioned that the new blocks of bid liquidity, including one at $41,500, could be inorganic.
However, it also expected that the upward trend could likely continue onto the next year as socio-economic shifts and potential approval of the first Bitcoin spot price exchange-traded fund (ETF) in the U.S stimulate anticipation.
Influential trader Daan Crypto Trades observed decreasing open interest during the settling phase that led into the day's Wall Street open. Trader, analyst, and podcast host Scott Melker examined a four-hour chart to predict Bitcoin's trend, claiming that Bitcoin frequently surpasses "bearish" increasing patterns in a bull market. Popular social media pundit Moustache opined that the current bull market should follow previous BTC price patterns, causing Bitcoin's surge to $48,000 and predicting a future reach of $60,000.
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Published At
12/5/2023 7:18:00 PM
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