On December 3, Bitcoin remained near the $40,000 threshold as gains over the weekend confirmed a “strong” upswing.
A new BTC price spike was tracked by data from TradingView and Cointelegraph Markets Pro, pushing BTC/USD to all-time highs of $39,730 in 2023.These strengthened the upward trend that had begun a few days before, when Bitcoin touched $39,000 for the first price since the middle of 2022.In light of derivatives, observers had suggested that spot purchases would need to increase in order to sustain momentum as the Wall Street trading week came to a finish.The final course of events was unexpected, with a sudden spike in Bitcoin and other cryptocurrencies wiping out earlier resistance.Popular trader Skew implied that “someone just ran all shorts across the board seemingly on most pairs” during coverage on X (previously Twitter).
As a result, the behavior of the price of bitcoin around the weekly open came into question. CME Bitcoin futures ended the week at $39,225, which left a gap between it and the spot price that would typically be “filled” by a decline.However, fellow trader Daan Crypto Trades forecast that things would be different this time after analyzing the current situation.
“Whenever $BTC is in a strong trend (up or down) and especially when it’s trading at yearly highs or price discovery. You tend to have these weekend moves that break out and leave a lot of people behind. Often creating a gap that never gets closed or not until weeks later,” part of an X post 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 agreed that the area around the Friday closing price had offered an opportunity to “trap” shorters. “Due to me thinking it was pretty likely to see a big move occur during the weekend, I did not share the usual CME chart. So far the suspicion was correct and people trying to short this move would have been rekt,” he wrote.
Roughly $30 million worth of Bitcoin shorts were liquidated on December 1 and 2, according to data from the statistics website CoinGlass.
As the $40,000 level approached, market players focused on positive indications on longer horizons.BTC/USD, according to well-known Twitter pundit Alan Tardigrade, was clearly not in a downward trend when it reached an all-time high of $69,000 in November 2021.He said, “Bitcoin has entered All-the-way-UP mode,” referring to a graphic that demonstrated how the price of BTC has clearly broken out of the trend in recent times.
Before “some correction” could take place, another commentator BitQuant, who is well-known for his optimistic views on Bitcoin in the current climate, anticipated a return to the highs.Both viewpoints mirrored actions from earlier Bitcoin bull markets.BitQuant boldly predicted in September that the price of Bitcoin/USD would surpass all previous highs before the next block subsidy halving in April 2024, which is only four months away.