Cryptocurrency markets have seen a correction movement recently, despite the overall upward trend, with many analysts issuing warnings. Bitcoin continues to trade around the $38,000 region as of November 29th. Particularly, the postponement of Bitcoin spot ETF applications by the United States Securities and Exchange Commission (SEC) on November 28th has sparked hopes among investors for January.
What’s Happening on the Bitcoin Front?
According to data from TradingView, Bitcoin’s price momentum continues to target the highest levels in the last 18 months. After reaching current peak levels with the rise on November 28th, Bitcoin’s price reached $39,000 in the futures market and the SEC’s decision caused surprise among investors.
The ongoing process has ignited a notable debate, and excitement in the futures market has led some analysts to warn large-volume traders about potential liquidation of delayed long positions at the peak. Keith Alan, co-founder of the data monitoring platform Material Indicators, advised investors to be cautious of these whale investors during this process:
“Early today, liquidity at the $38,000 level was withdrawn to open the door to the $38,500 level. Don’t let this make you think it’s a friendly whale supporting you. It could be a Killer Whale trying to induce FOMO.”
Analysts Maintain Hope for Bitcoin
Alan suggested that the press conference to be held by Federal Reserve Chairman Jerome Powell on December 1st could introduce an external factor that might push the Bitcoin price beyond the $40,000 mark:
“My assumption is they will continue to do this until a sufficient level is reached to sell. It doesn’t mean Powell’s speech cannot be the factor that pushes Bitcoin price above $40,000, especially since we’ve seen the bid liquidity rise above $37,500, but if you’re not ready to sweep the local lows between now and then, you’re not paying attention to how these whale games are played.”
A chart shared by Material Indicators shows the order book liquidity for BTC/USD concentrated at $38,500, a level that had not yet been tested at the time of writing.
However, many analysts continue to believe that further rises are possible, and even likely, in the short term. Skew, a popular trader analyzing current market conditions, shared with followers on X that the only thing missing for a correct breakout at the $40,000 level is volume.
- Bitcoin’s stability around $38,000 amidst market corrections.
- SEC’s ETF decision kindles investor optimism for January.
- Analysts anticipate potential short-term price increases.
