Bitcoin (BTC) Rockets to $42,000: its Pre-Terra Crash Heights

• Bitcoin’s (BTC) price stole the crypto market spotlight show with the retest of the $42,000 price mark.
• The coin has also triggered a similar bullish rally in altcoins.

Bitcoin (BTC), the world’s leading cryptocurrency has staged an impressive recovery, surging over 6 percent in the past 24 hours and reclaiming the $42,000 mark, a level last seen before the infamous Terra crash in May 2022. 

This resurgence not only marks a complete retracement from the impact of the Terra crash but also highlights Bitcoin’s resilience and its ability to regain lost ground in a short period.

Bitcoin (BTC) Price and Remarkable Rise

According to our Bitcoin Price Page, the largest digital asset by market capitalization reached a high of $42,100. Although it is presently trading at around $41,600, the cryptocurrency’s rapid rise is noteworthy, with the value increasing by more than 150 prices since the beginning of the year.

Besides the Bitcoin (BTC) price action on-chain data reveals a noteworthy surge in daily trading volume, escalating from over $30 billion on December 1 to the current value above $34 billion. This surge positions BTC trading volume at a yearly high, marking its highest level since November 2022.

Several factors contribute to the current market dynamics. The imminent Bitcoin halving scheduled for April next year and the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF) in the United States are key factors influencing investor sentiment. These events are pivotal as they can introduce new dynamics and participants to the crypto market, potentially driving further price appreciation.

However, Bitcoin’s bullish momentum has not been without its challenges. Recent data from Coinglass indicates that in the past 24 hours, 75,887 traders were liquidated, with volume totaling over $216 million. Notably, the majority of these liquidations were short positions, with $166 million in shorts wiped out compared to just over $50 million in long positions.

Excitingly, the global crypto market cap has also experienced a significant uptick, standing at $1.62 trillion. This represents a 4.0 percent increase in the past 24 hours. This level has not been seen since late April 2022, emphasizing the breadth of the market’s rebound. Furthermore, November’s crypto exchange trading volume, according to The Block’s Data Dashboard, surpassed $826 billion, marking the highest monthly volume since March.

Performance of Other Digital Assets

While Bitcoin steals the spotlight with its impressive recovery, other blue-chip cryptocurrencies have also marked gains. Ethereum (ETH) rose over 4 percent, maintaining its price position at $2,201. Binance Coin (BNB) posted a modest uptick of over 2 percent, reaching its current price of $234. Solana (SOL) traded flat around the $63.50 mark.

As highlighted in an earlier report, Bitcoin Cash (BCH), often considered undervalued, recorded a substantial surge of 10 percent. With a base formed around the $220 price level, BCH steadily climbed to break the $225 resistance level, supported by a bullish score of 84/100. As of press time, Bitcoin Cash was trading at $241.18, with positive indicators around the 100 Simple Moving Average on the 4-hour timeframe suggesting a continuation of the bullish trend.

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