Bitcoin Soars Above $40,000 Mark - Revived Bulls or an Impending Price Correction?
Summary:
Bitcoin began December on a high note, crossing $40,000, its best performance since early 2022, driven by macroeconomic shifts and the anticipation of the US's first spot price exchange-traded fund (ETF). While sellers keep missing profit-making opportunities, Bitcoin miners are gearing up for the halving with hash rates hitting record highs. However, traders' views are divided on the sustainability of Bitcoin's rally, considering potential major corrections and the impact of the US Federal Reserve's policy changes. Meanwhile, gold also showed a response, reaching new record highs in dollar terms. Despite these developments, traders are advised to stay cautious and conduct individual research, considering worldwide inflation trends and the inherent risks of trading moves.
As we step into December, Bitcoin (BTC) is thriving at over $40,000, demonstrating its strongest performance since early 2022. The kickoff of December has been encouraging for BTC investors as the cryptocurrency marks its best weekly close, crossing $40,000 - a first since April last year. The recent bullish activity, fueled by macroeconomic shifts and anticipation of the United States' inaugural spot price exchange-traded fund (ETF), is rapidly eliminating short positions and absorbing liquidity. Despite the skepticism and predictions of a substantial price drop, Bitcoin continues to offer little consolation to sellers, who constantly lose opportunities for profit or are stranded waiting for an buying price point that never appears. Meanwhile, Bitcoin miners are gearing up for the halving and the hash rate is hitting unprecedented highs with no sign of slowing down this week. In the coming days, seasoned market operators will be questioning whether Bitcoin's momentum is sustainable as traditional markets react and adapt to a Bitcoin price that has breached $40,000. This article presents a detailed review of Bitcoin's performance this week, diving into potential volatility triggers that Bitcoin hodlers may encounter. Bitcoin's surge beyond $40,000 has been remarkable, despite lingering concerns about a potential significant correction. Bitcoin is reviving investor memories of the earlier bullish activity as December begins by liquidating shorts and surpassing crucial resistance points. The optimism kicked off with the weekly close when $40,000 appeared feasible for the first time since April last year. Yet, Bitcoin bulls didn't rest there; BTC/USD continued to ascend to the current local highs of $41,800, according to data from Cointelegraph Markets Pro and TradingView. In the process, over $50 million worth of Bitcoin short positions were wiped out on Dec. 4 alone, representing the biggest single-day elimination since Nov. 15, as per CoinGlass. Understandably, many traders are optimistic about a price rally towards $50,000, as leveraged short liquidity gradually diminishes with the increasing BTC price performance. However, not everyone expects the bullish ride to continue unabated. Well-known trader Crypto Chase believes that the current price levels present a perfect opportunity to ensnare late longs and bring Bitcoin's price down by $10,000. Last week's series of US macroeconomic data releases had little influence on Bitcoin's then-consolidated trading range. However, the picture began to change when Federal Reserve Chair Jerome Powell indicated that the US' monetary policy might witness significant changes. Meanwhile, gold has been responding to these developments, hitting new record highs in dollar terms before adjusting. Bitcoin miners show no signs of ceasing their efforts as they brace for the upcoming block subsidy halving in April. Despite the bullish surge in Bitcoin prices, Crypto Chase warns traders not to get carried away, reminding them of the ongoing worldwide inflation trends. This news provides neither investment advice nor recommendations. Readers must carry out their own investigations before making any financial decisions as all trading moves involve risks.
Published At
12/4/2023 9:29:58 AM
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