Breakout or $40K bull trap? 5 things to know in Bitcoin this week

Bitcoin surges past the key $40,000 amid a macro liquidity boost, but traders’ predictions include a BTC price crash of 25% or more.

Bitcoin (BTC) starts the first week of December looking better than it has since early 2022 — at over $40,000.

BTC price action is delighting bulls already as the month begins, with the weekly close providing the first trip above the $40,000 mark since April last year.

Shorts are getting wiped and liquidity taken as the bull run sees its latest boost on the back of macroeconomic changes and anticipation of the United States’ first spot price exchange-traded fund (ETF).

Despite misgivings and some predicting a major price retracement, Bitcoin continues to offer little respite for sellers, who continually miss out on profits or are left waiting on the sidelines for an entry price which never comes.

The party mood is not just reflected on markets — Bitcoin miners are busy preparing for the halving, and with hash rate already at all-time highs of its own, the trend is set to continue this week.

Is there more upside left or is Bitcoin getting ahead of itself?

This is the question that longtime market participants will be asking in the coming days as legacy markets open and adjust to a post-$40,000 BTC price.

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