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Source: Сointеlеgrаph

Bitcoin (BTC) remained higher after a $17,000 liquidity grab on December 9 as traders set their sights on further gains.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View

Bitcoin is trying to set a new monthly high

Data from Markets Pro and TradingView again showed a decrease in BTC/USD volatility after hitting $17,300 on Bitstamp.

The pair started by gaining liquidity on the Dec 8 Wall Street open and the trend has snowballed to see it challenge the Dec 5 monthly highs.

For those who had already bet on the continuation of the upward movement, this movement was a bit of a surprise, as it was still clear what could be added to the profit.

“Movement towards $18-19 thousand BTC continues,” summed up the popular Credible Crypto trader.

A previous tweet on Dec 7 explained the rationale for invalidating the $16,000 backing.

“The lows have been cleared and, on cue, the Binance monkeys are showing up to support the 16k mid,” reads part of the accompanying comments.

“Possibly another push to 16.4K-16.5K and then expected to reverse up and continue to 18K-19K targets.”

Annotated BTC/USD chart. Source: Credible Crypto/Twitter.

Meanwhile, fellow trader Chads has foreseen potential continued volatility as BTC/USD marks its upper Bollinger band on the 4-hour timeframes.

At the time of writing, the 4-hour candles remained near the upper band, with both still expanding in a classic prelude to increased volatility.

4-hour BTC/USD (Bitstamp) candlestick chart with Bollinger Bands. Source: Trading View

“Expect continuation for Bitcoin as long as we remain above $17K,” added Mikael van de Poppe, founder and CEO of trading firm Eight, comparing the overnight move to the late November breakout.

Liquidation Helps BTC Prices Rise

Further analysis of the BTC price movement the next day revealed an increase in the number of liquidations of short positions.

Related: 2022 Bitcoin bear market ‘usual’ despite loss of key trend line – Analyst

Coinglass data shows that in a sign of how much market participants were expecting further declines, short selling of BTC totaled $7 million in one hour on December 8th. The short liquidation of altcoins added another $11 million to the total.

“Liquidations have been relatively small since the crash in early November, but short liquidations contributed to this recent move,” On-Chain College analytics confirmed.

BTC liquidation chart. Source: Coinglass

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of .

Source: Сointеlеgrаph

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