bitcoin (btc) remained closer to the $40,000 mark on December 3 after weekend gains reinforced a “strong” bullish trend.
bitcoin leaves 60 million dollars pending in shorts
Data from Cointelegraph Markets Pro and TradingView tracked a new btc price surge, taking btc/USD to new 2023 highs of $39,730.
These took advantage of the bullish momentum, which had begun days earlier, when bitcoin reached $39,000 for the first time since mid-2022.
With derivatives nearing the end of Wall Street's trading week, commentators had argued that spot buyers needed to step up their efforts to maintain momentum. Events finally took an unexpected turn, with a sudden surge in bitcoin and altcoins breaking down previous resistance.
In part of the coverage on X (formerly Twitter), popular trader Skew He suggested that “someone just ran all the shorts across the board in apparently most pairs.”
This, in turn, placed btc price action around the weekly open in question: CME bitcoin futures closed the week at $39,225, leaving a gap between that price and the spot price, which is normally would “fill” through a fall.
However, analyzing the status quo, trader Daan crypto Trades predicted that this time would be different.
“Whenever $btc is in a strong trend (bullish or bearish) and especially when it is trading at yearly highs or price discovery. You tend to have these weekend movements that blow up and leave a lot of people behind. “Often creating a gap that is never closed or not until weeks later,” part of a x publication explained.
“During strong trend environments, trading the CME price no longer has a very strong advantage. It's amazing during the side cut, but not like this.”
Daan crypto Trades agreed that the area around Friday's closing price had offered an opportunity to “catch” short sellers.
“Because I thought a big move was very likely over the weekend, I didn't share the usual CME chart. So far the suspicion was correct and people trying to shortcut this movement would have failed,” he wrote.
Statistical resource data. glass coin showed around $30 million in btc shorts liquidated on both December 1st and 2nd.
btc price in “fully UP mode”
Meanwhile, with $40,000 in sight, market participants turned their attention to bullish signals in longer time frames.
Related: bitcoin ETF Will Drive 165% btc Price Rise in 2024 – Standard Chartered
For popular Twitter commentator Alan Tardigrade, btc/USD was well outside a descending channel in place from its November 2021 all-time high of $69,000.
“bitcoin has gone into Full UP mode,” he said. commented on a chart showing how btc's recent price action had decisively broken out of trend.
Commentator BitQuant, known for his bullish stances on bitcoin in the current environment, foresees a return to the highs before “any correction” can take hold.
Both outlooks channeled the behavior of previous bitcoin bull markets.
Yes, up to the previous all-time highs and then some correction to give the bears some hope. https://t.co/2ovCs4mvGi
—BitQuant (@BitQua) December 3, 2023
In September, BitQuant made the bold prediction that btc/USD would surpass its all-time highs before the next block subsidy halving in April 2024, just four months away.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
