{"id":137642,"date":"2020-12-20T01:30:00","date_gmt":"2020-12-19T22:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-traders-expect-continuation-after-bitcoin-price-spike-to-24k\/"},"modified":"2020-12-20T01:30:00","modified_gmt":"2020-12-19T22:30:00","slug":"3-reasons-why-traders-expect-continuation-after-bitcoin-price-spike-to-24k","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-traders-expect-continuation-after-bitcoin-price-spike-to-24k\/","title":{"rendered":"# 3 reasons why traders expect continuation after Bitcoin price spike to $24K"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3c5659a02ae\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3c5659a02ae\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-traders-expect-continuation-after-bitcoin-price-spike-to-24k\/#A_massive_short_squeeze_occurs_again_at_23600\" >A massive short squeeze occurs again at $23,600<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-traders-expect-continuation-after-bitcoin-price-spike-to-24k\/#The_market_is_unfazed_by_the_US_FinCEN_rule\" >The market is unfazed by the U.S. FinCEN rule<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons why traders expect continuation after Bitcoin price spike to $24K <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The price of Bitcoin (BTC) surpassed $24,000 on Dec. 19, reaching a new all-time high. On Coinbase, BTC peaked at $24,200 and has since consolidated into the $23,500 to $23,800 range.<\/p>\n<p>Three factors pushed the price of BTC upwards within a short period, leading it to a record-high. The factors are a large short squeeze, stacked sell orders at $23,600, and the market\u2019s reaction to the U.S. Treasury\u2019s self-custodied wallet rule proposal.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_massive_short_squeeze_occurs_again_at_23600\"><\/span>A massive short squeeze occurs again at $23,600<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to data from Bybt.com, $138 million worth of short contracts were liquidated today.\u00a0<\/p>\n<p>The mass liquidation of short contracts occurred just as Bitcoin surpassed $23,600. The $23,600 area was a key resistance level because of stacked sell orders across major exchanges.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/ba5a35dd-d61f-417c-a7f0-690e2c221860.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin exchange liquidation data. Source: Bybt.com<\/em><\/figcaption><\/figure>\n<p>On Bitfinex, the $23,600 and $23,800 resistance levels had large sell orders before the rally occurred. As the Bitcoin price began to increase, it squeezed out shorts and sellers in the $23,600 to $23,800 resistance range.<\/p>\n<p>Typically, a short squeeze h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens when a seller is forced to market buy their position because the price of Bitcoin goes up. This causes the buyer demand to surge within a short period, often leading to a large breakout to the upside.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_market_is_unfazed_by_the_US_FinCEN_rule\"><\/span>The market is unfazed by the U.S. FinCEN rule<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Dec. 19, U.S. Treasury Secretary Steven Mnuchin revealed a rule proposal concerning self-custodied wallets.<\/p>\n<p>The rule requires exchanges to keep track of withdrawals and deposits above $3,000 that originated from non-custodial wallets. If the transactions surpass $10,000, then exchanges would have to report directly to the Financial Crimes Enforcement Network (FinCEN).<\/p>\n<p>However, as analysts explained, the rule itself is not as bad as industry executives initially thought. Cointelegraph reported that unless the proposal becomes law, Bitcoin price and the wider crypto market would likely ignore the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>.<\/p>\n<p>Jake Chervinsky, a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> counsel at Compound Finance, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jchervinsky\/status\/1340135041746300932\">said<\/a>:<\/p>\n<blockquote><p>\u201cLet&#8217;s look on the bright side for a minute. This doesn&#8217;t require KYC for every transaction with a non-custodial wallet. It isn&#8217;t an outright ban on self-custody. It doesn&#8217;t prohibit the act of using a permissionless network. It really &#8212; REALLY &#8212; could have been much worse.\u201d<\/p><\/blockquote>\n<p>Still, despite the positive catalysts, in the near term, traders believe Bitcoin could consolidate or pull back, due to the overextension of the rally.<\/p>\n<p>Scott Melker, a cryptocurrency trader, pinpointed the Relative Strength Index (RSI) of Bitcoin on the 4-hour chart to suggest that overbought bear divergences are likely to occur. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/scottmelker\/status\/1340326372489768960\">said<\/a>:<\/p>\n<blockquote><p>\u201cClosed my $BTC leveraged long. Overbought bear divs are likely, not guaranteed. But I would love to long a retrace if given the chance. Especially a retest of the old all times high as support.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-why-traders-expect-continuation-after-bitcoin-price-spike-to-24k\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons why traders expect continuation after Bitcoin price spike to $24K &#8221; The price of Bitcoin (BTC) surpassed $24,000 on Dec. 19, reaching a new all-time high. On Coinbase, BTC peaked at $24,200 and has since consolidated into the $23,500 to $23,800 range. Three factors pushed the price of BTC upwards within a&#8230;<\/p>\n","protected":false},"author":1,"featured_media":137643,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/3c0bb050-e72b-406b-a52c-73f81546870a.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74972,74937,74860,75012,74939,73785],"class_list":["post-137642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-futures","tag-bitcoin-price","tag-cryptocurrency-exchange","tag-derivatives","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/137642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=137642"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/137642\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/137643"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=137642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=137642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=137642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}