Bitcoin Holds Strong Uptrend as Price Approaches $40,000 Mark
Bitcoin (BTC) continues to maintain its upward momentum, with the price hovering close to the $40,000 mark on December 3. Over the weekend, BTC experienced significant gains, reinforcing its strong uptrend.
The BTC/USD 1-hour chart shows that the recent surge in Bitcoin’s price led to new 2023 highs of $39,730. This followed the upward momentum that had been building for days, as Bitcoin reached $39,000 for the first time since mid-2022.
Derivatives played a significant role in the market, leading up to the end of the Wall Street trading week. Analysts argued that spot buyers needed to step up to maintain the momentum. However, the market took an unexpected turn, with a sudden surge across Bitcoin and altcoins, which wiped out previous resistance levels.
Popular trader Skew, in a post on X (formerly Twitter), suggested that “someone just ran all shorts across the board seemingly on most pairs.” This action put the behavior of BTC price around the weekly open in question. Normally, a dip would occur to fill the gap between the CME Bitcoin futures closing price and the spot price.
Fellow trader Daan Crypto Trades analyzed the situation and predicted that this time would be different. In a post on X, he explained, “During strong trending environments, trading the CME price doesn’t have a very strong edge anymore. It’s amazing during sideways chop but not like this.”
Daan Crypto Trades also noted that the area around the Friday closing price had offered an opportunity to “trap” shorters. He correctly anticipated a big move occurring over the weekend, which would result in shorters getting “rekt.”
Data from statistics resource CoinGlass showed that around $30 million in BTC shorts were liquidated on both December 1 and December 2.
With the $40,000 mark in sight, market participants turned their attention to bullish signals on longer timeframes. Twitter commentator Alan Tardigrade mentioned that BTC/USD had broken out of a downward channel that had been in place since its November 2021 all-time high of $69,000. He stated, “Bitcoin has entered All-the-way-UP mode.”
BitQuant, another commentator known for his bullish takes on Bitcoin, predicted a return to the highs before a potential correction occurs. This sentiment aligns with previous Bitcoin bull markets.
In September, BitQuant made the bold prediction that BTC/USD would surpass its record highs before the next block subsidy halving in April 2024, just four months away.
Disclaimer: This article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making any decisions.
