Bitcoin Price Soars to New Heights in 2023, Exceeding AUD 63,600 for the First Time Since April 2022 

Bitcoin (BTC) has been on a significant upward trajectory, achieving new heights in 2023. In the late hours of Monday, the leading cryptocurrency reached an impressive AUD 63,910.65, a level not seen since April 2022, before the Terra/Luna collapse.

Analysts at Bitfinex shed light on the reasons behind this surge. “The market witnessed considerable buying activity, particularly targeting the supply above AUD 56,625, near the top of its recent trading range,” they explained. “On December 1, with Bitcoin just below this range high, the Cumulative Volume Delta (CVD) for the futures market, an indicator of mid- to long-term buy and sell pressure, showed greater resilience during downturns on lower time frames compared to the CVD for spot markets.”

The market was in a state of ‘perp premium,’ indicating a higher demand for BTC in the futures market relative to the spot markets. “While this might typically signal caution due to the increased leverage, the concurrent decline in open interest, particularly on the short side, was noteworthy,” Bitfinex analysts added. “Significant buying after November’s monthly close resulted in forced closures of accumulated short positions, driving the price upward.”

Matteo Greco, a research analyst at Fineqia International, noted that Bitcoin’s overnight jump to around AUD 63,910.65 marks its seventh consecutive week of gains, a streak last seen over three years ago in October to November 2020. “This reflects a growing confidence in the digital asset market, with Bitcoin’s price surging approximately 55% during this period,” Greco said.

Greco further highlighted that due to the BTC price hike, short positions worth about AUD 226.5 million were liquidated over twelve hours. “In such volatile market conditions, these liquidations tend to intensify the existing trend. In this case, it helped fuel a significant upward movement, pushing BTC to the AUD 63,910.65 mark,” he explained. However, he also pointed out that about AUD 75.5 million worth of long positions were liquidated, amounting to over AUD 302 million in total.

Looking ahead, Greco suggests a potential retracement in December to balance open interest and leverage before building an upward trend as the SEC’s decision deadline on a spot Bitcoin ETF approaches. “Approval could bring a short-term influx of capital from traditional finance investors, propelling the uptrend. Conversely, rejection might cause a short-term negative price reaction due to high market expectations,” he stated.

“A rejection could lead to a downturn in January as market players adjust their positions,” he added. “However, analysts remain optimistic, assigning a 90% probability to an approval.”

At the time of writing, Bitcoin trades at approximately AUD 62,856, marking a 6%+ increase on the 24-hour chart.

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