At the start of the week, Bitcoin, focused on the $42,000 level, faced sharp volatility in its price movement. After gaining more than 10% over the weekend, Bitcoin continues to gain significant momentum as investors anticipate their next moves. According to TradingView data, the BTC/USD pair was trading at $41,575 at the time of writing, having reached $42,160, the highest level in 19 months, earlier in the day.
What’s Happening on the Bitcoin Front?
A look at the liquidity data in the BTC/USD pair’s order book shows instant snapshots of buyer support and seller interest impacting the Bitcoin price. Material Indicators shared the data on December 4th, indicating the strongest bid concentrations at $41,500 and $40,700 at the time of writing.
Large-volume investors were expected to create selling pressure right above the spot price with sales in the current market conditions. According to Material Indicators analysts, this situation is not a coincidence. The team commented in their post:
“As we have been saying all week, as long as whales can continue to pull the bid liquidity into the range or distribute it enough to be tempting, we thought Bitcoin would continue to climb.”
Moreover, according to liquidity data from the blockchain data analysis platform CoinGlass, after the December 4th Wall Street opening, the $42,420 level drew attention as a close area of interest for investors in the futures market of the cryptocurrency exchange Binance.
Noteworthy Bitcoin Chart from a Popular Analyst
Popular analyst and investor Scott Melker made striking remarks about the Bitcoin price in a post from December 4th. According to Melker, the $42,000 level is historically one of the most important levels for Bitcoin in the upcoming period.
Melker mapped out key price points on a chart shared in his post, which have acted like magnets in various ways since their creation, some dating back more than two years.
For instance, the $42,000 level represents the initial rejection price in early 2021 when the BTC/USD pair surged sharply following the news of electric vehicle manufacturer Tesla adding Bitcoin to its balance sheet. Melker commented on the matter:
“It was the dead top of the Tesla rally in January 2021 and has since acted as both support and resistance countless times.”