Bitcoin (BTC) stayed higher after a $17,000 liquidity grab on Dec. 9 as traders targeted further upside.
Bitcoin attempts new monthly high
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD cooling volatility once more after hitting $17,300 on Bitstamp.
For those already betting on upward continuation, the move came as little surprise, with the coast still clear to add to the gains.
“The move to 18-19k $BTC continues,” popular trader Credible Crypto summarized.
A previous tweet from Dec. 7 explained the rationale, with invalidation set at $16,000 support.
“Lows cleaned up and as if on cue Binance apes showing up to support the mid 16k’s,” part of accompanying comments read:
“Maybe one more push into 16.4-16.5k and then expecting a reversal back up and continuation to 18-19k targets.”
Fellow trader Cheds, meanwhile, eyed potential continuation of volatility, with BTC/USD tagging its upper Bollinger Band on 4-hour timeframes.
At the time of writing, 4-hour candles remained near the upper band, with both still expanding in a classic prelude to increased volatility.
“Expecting continuation for Bitcoin as long as we stay above $17K,” Michaël van de Poppe, founder and CEO of trading firm Eight, added, likening the overnight move to the breakout from the end of November.
Liquidations fuel BTC price run-up
Further analysis of overnight BTC price action highlighted increased liquidations of short positions.
Related: Bitcoin 2022 bear market ‘usual’ despite key trend line loss — Analyst
In a sign of the extent to which market participants assumed further downside would enter, short liquidations on BTC totaled $7 million in a single hour on Dec. 8, data from Coinglass shows. Altcoin short liquidations added another $11 million to the tally.
“Liquidations have been relatively small since the early November crash but short liquidations helped fuel that recent move,” analytics resource On-Chain College confirmed.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.