Bitcoin (BTC) reached close to $40,000 on December 3 after a weekend rally that reinforced a “strong” run.
Bitcoin leaves $60 million shorted.
Data from Cointelegraph Markets Pro and TradingView tracks the BTC price surge, pushing BTC/USD to a 2023 high of $39,730.
This builds on the upward momentum that began a few days ago, with Bitcoin hitting $39,000 for the first time since mid-2022.
As derivatives trades near the end of the Wall Street trading week, commentators have argued that spot buyers need to step up to maintain momentum. Events ultimately took an unexpected turn, with a sharp rise in Bitcoin and altcoins obliterating previous resistance.
Popular trader Skew is part of the coverage of X (formerly Twitter). suggested “Someone seemingly ran all the shorts across the board for most pairs.”
This determined BTC price action around the weekly opening price in question. CME Bitcoin futures closed the week at $39,225, leaving a gap with spot prices that is typically “filled” through declines.
However, fellow trader Daan Crypto Trades analyzed the status quo and predicted that this time will be different.
“Whenever $BTC is in a strong trend (up or down), especially when trading at yearly highs or price discoveries. You tend to leave a lot of people behind on the weekends. “It often creates a gap that never closes or closes until several weeks have passed.” X post explained.
“In a strong trend environment, CME price trading no longer has a strong edge. It’s amazing while cutting sideways, but not like this.”
Daan Crypto Trades agreed that Friday’s close proximity provided an opportunity to “trap” short sellers.
“I didn’t share the typical CME chart because I thought there was a pretty good chance we would see a big move over the weekend. “The suspicions so far have been correct and those trying to curtail this movement will have been canceled,” he wrote.
According to data from statistics resource CoinGlass, there was approximately $30 million in BTC shorts liquidated on December 1 and December 2.
BTC price in “omnidirectional mode”
Meanwhile, with $40,000 just around the corner, market participants have turned their attention to longer-term bullish signals.
Related: Bitcoin ETF Will Drive BTC Price Up 165% in 2024 — Standard Chartered
According to popular Twitter commentator Alan Tardigrade, BTC/USD is well out of its downward channel since its all-time high of $69,000 in November 2021.
“Bitcoin has entered all-the-way-UP mode.” I left a comment. This chart shows how decidedly out of trend the recent BTC price movement has been.
Fellow commentator BitQuant, known for his bullish view on Bitcoin in the current environment, has been eyeing a return to the highs before “some correction.”
Both perspectives mirrored the behavior of previous Bitcoin bull markets.
Yes, after climbing to previous all-time highs, some corrections have been made to give bears some hope https://t.co/2ovCs4mvGi
— BitQua (@BitQua) December 3, 2023
Last September, BitQuant made a bold prediction that BTC/USD would hit a new all-time high before the next block subsidy halving in April 2024, which is just four months away.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.