Bitcoin Holds Strong Uptrend Near $40,000
Bitcoin (BTC) continues to hover around the $40,000 mark after a surge in weekend gains reinforced its strong uptrend. This upward momentum started a few days prior when Bitcoin reached $39,000 for the first time since mid-2022. Commentators had initially argued that spot buyers needed to step up to maintain momentum as derivatives led into the end of the Wall Street trading week. However, an unexpected surge across Bitcoin and altcoins wiped out previous resistance. This surge placed BTC price behavior around the weekly open in question, leaving a gap between CME Bitcoin futures’ closing price and the spot price.
Shorts Trapped as BTC Price Surges
Popular trader Skew suggested that someone ran all shorts across the board on most pairs. Fellow trader Daan Crypto Trades predicted that this time would be different from previous trends. He explained that during strong trending environments, such as when Bitcoin is trading at yearly highs or in price discovery, there tend to be weekend moves that break out and leave many people behind. Daan Crypto Trades believed that shorters were trapped in the area around the Friday closing price due to the likelihood of a big move occurring over the weekend.
$30 Million in BTC Shorts Liquidated
Data from statistics resource CoinGlass revealed that around $30 million in BTC shorts were liquidated on both December 1 and December 2. This further indicated the unexpected surge in Bitcoin’s price and its impact on short positions.
BTC Enters “All-the-way-UP Mode”
With $40,000 within reach, market participants started focusing on bullish signals on longer timeframes. Analysts like Alan Tardigrade noted that BTC/USD had exited a downward channel that had been in place since its all-time high in November 2021. This signaled a shift to “All-the-way-UP mode.” BitQuant, another commentator, predicted a return to previous highs before a potential correction.
Hot Take: BTC/USD Could Beat Record Highs Before April 2024
In September, BitQuant made the bold prediction that BTC/USD would surpass its record highs before the next block subsidy halving in April 2024, just four months away.
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