Bitcoin (BTC) is holding steady near the $40,000 mark as it continues to strengthen its uptrend. Over the weekend, BTC experienced significant gains, pushing its price to new highs for 2023 at $39,730. The momentum had been building for days, with Bitcoin reaching $39,000 for the first time since mid-2022. Analysts had anticipated that spot buyers would need to step in to sustain this momentum, as derivatives led into the end of the Wall Street trading week. However, the market took an unexpected turn when a sudden surge occurred across Bitcoin and altcoins, breaching previous resistance levels.
Traders reported that “someone just ran all shorts across the board seemingly on most pairs,” according to a popular trader on X (formerly Twitter), Skew. This surge meant that the behavior of Bitcoin’s price around the weekly open was in question. The CME Bitcoin futures closed the week at $39,225, leaving a gap between their price and the spot price, which would typically be “filled” via a dip. However, fellow trader Daan Crypto Trades predicted that this time might be different. Daan Crypto Trades explained that during strong uptrends like this, there are often weekend moves that break out and leave many people behind. This often creates a gap that may never get closed or takes weeks to close.
Daan Crypto Trades also noted that the area around Friday’s closing price provided an opportunity to trap shorters. The expectation of a significant move over the weekend led to the decision not to share the usual CME chart, which turned out to be the correct decision. Data from CoinGlass showed that around $30 million worth of BTC shorts were liquidated on both December 1 and December 2. As Bitcoin approaches $40,000, market participants are now focusing on bullish signals on longer timeframes.
Alan Tardigrade, a well-known commentator on Twitter, pointed out that BTC/USD has broken out of the downward channel that has been in place since its all-time high of $69,000 in November 2021. He commented that “Bitcoin has entered All-the-way-UP mode,” indicating the bullish sentiment in the market. BitQuant, another respected commentator, expects Bitcoin to reach new highs before experiencing a correction. This aligns with previous Bitcoin bull markets, where the price surged to new heights before a temporary correction took place.
In September, BitQuant made a bold prediction that BTC/USD would surpass its record highs before the next block subsidy halving in April 2024, which is only four months away. This optimistic outlook suggests that Bitcoin’s current uptrend may continue for some time, with potential for significant price increases.
Bitcoin continues to showcase its strength and upward momentum, reaching new highs for 2023. The recent surge in price and the liquidation of BTC shorts have caught many traders off guard, highlighting the unpredictability of the market. With Bitcoin approaching the $40,000 mark, market participants are monitoring longer timeframes for bullish signals. Both Alan Tardigrade and BitQuant believe that Bitcoin’s price will continue to rise, with potential for new all-time highs before a correction takes place. This positive outlook for Bitcoin’s future suggests that the current upward trend may continue and attract more investors to the cryptocurrency market.