At the beginning of the week, Bitcoin experienced a sharp fluctuation in price as it focused on the $42,000 level. After recording an increase of more than 10% over the weekend, Bitcoin continues to gain significant momentum as investors await their next moves. According to TradingView data, the BTC/USD pair was trading at $41,575 and reached $42,160 within the day, marking its highest level in the past 19 months.
Looking at the liquidity data in the order book of the BTC/USD pair, instant insights into how buyer support and seller interest affect Bitcoin’s price are emerging. According to Material Indicators, the strongest buyer concentrations were noted at $41,500 and $40,700 when the article was written.
Given the current market conditions, it was expected that high-volume investors would create selling pressure just above the spot price. According to Material Indicators analysts, this was not a coincidence. The team stated in their posts that as long as whales continue to pull bid liquidity into a range or distribute it in a way that makes it attractive, they believe Bitcoin will continue to rise.
According to liquidity data obtained from the CoinGlass blockchain data analysis platform, after Wall Street’s opening on December 4, the cryptocurrency exchange Binance’s futures market drew attention to the level near $42,420 as an area of interest for investors.
Popular analyst and investor Scott Melker made striking comments about the Bitcoin price in a post on December 4. According to Melker, the $42,000 level is historically one of the most important levels for Bitcoin in the coming period. In a chart shared in his post, Melker mapped out significant price points that have acted as magnets in various ways since they were created. For example, the $42,000 level represented the initial rejection price when there was a sharp increase in the BTC/USD pair after electric vehicle manufacturer Tesla announced the addition of Bitcoin to its balance sheet early in 2021. Melker interpreted this as the definite peak of the Tesla rally in January 2021 and noted that it has served as both support and resistance numerous times since then.