Bitcoin (BTC) continued its bullish trajectory, hovering near the $40,000 mark on December 3rd. The weekend saw impressive gains that further solidified the ongoing upward trend. Price data from Cointelegraph Markets Pro and TradingView indicated a fresh surge that propelled BTC/USD to new heights in 2023, reaching $39,730. These gains built upon the momentum that had been building for days, with Bitcoin hitting $39,000 for the first time since mid-2022. Traders speculated that spot buyers would need to step up to sustain this momentum, particularly as derivatives trading approached the end of the Wall Street week.
However, the market took an unexpected turn as a sudden surge experienced across Bitcoin and altcoins resulted in the elimination of previous resistance levels. Popular trader Skew shared on X (formerly Twitter), theorizing that “someone just ran all shorts across the board seemingly on most pairs.” This development raised questions about BTC price behavior concerning the weekly open. CME Bitcoin futures finished the week at $39,225, leaving a gap between this figure and the spot price, which would typically be “filled” through a dip.
Despite the prevailing status quo, trader Daan Crypto Trades argued that this time would be different, rejecting the traditional dynamics of the market. Daan Crypto Trades highlighted that during strong trends, whether upwards or downwards, especially when Bitcoin is trading at yearly highs or exploring price discoveries, such weekend moves tend to occur, leaving many traders behind. These moves often create gaps in the market that may take weeks to close, if at all. The trader added that trading the CME price during strong trending periods no longer provided a significant edge.
Daan Crypto Trades further pointed out that the area around the Friday closing price presented an opportunity to “trap” shorters, emphasizing that the expectations of a significant weekend move prompted them not to share the usual CME chart. As it turned out, those who attempted to short this move would have suffered significant losses. CoinGlass, a statistics resource, revealed that approximately $30 million in BTC shorts were liquidated on both December 1st and 2nd.
With $40,000 in sight, market participants began focusing on bullish signals observed on longer timeframes. Alan Tardigrade, a popular Twitter commentator, noted that BTC/USD had exited its downward channel that had persisted since its all-time high of $69,000 in November 2021. Tardigrade confidently stated, “Bitcoin has entered All-the-way-UP mode” while sharing a chart illustrating the recent BTC price action. Another commentator, known as BitQuant, who often adopts a bullish stance on Bitcoin, predicted a return to its previous highs before an impending correction.
Both of these perspectives echo behaviors seen in previous Bitcoin bull markets. 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.
Bitcoin’s ongoing ascent has captivated the attention of traders and investors alike. With the cryptocurrency nearing the $40,000 mark and exhibiting a strong upward trend, the market experienced unexpected weekend surges that defied conventional expectations. As Bitcoin defies resistances, shorts were liquidated, leaving traders reeling from significant losses. As market participants eagerly anticipate the $40,000 milestone, indicators on longer timeframes suggest further bullish movements. Bitcoin has once again displayed its ability to captivate the market and forge its path towards new highs. With experts predicting a return to record levels and even greater accomplishments, Bitcoin continues to leave its mark on the financial world.
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