Professional traders in the cryptocurrency space are taking a cautious approach as Bitcoin continues its amazing rise, carefully weighing the risks attached to the digital asset’s growing gains. The consistent rejections at pivotal resistance levels of $37,500 and $38,500 that were observed in late November are indicative of this methodical approach.

The market has occasionally performed well, buyers have had to make large liquidations due to market volatility, which has resulted in losses of about $390 million in five days. Because of the recent volatility, expert Bitcoin traders have had to reassess their plans, placing a stronger emphasis on risk management in light of the volatile price swings of the BTC.

In late November, Bitcoin encountered resistance at pivotal price points, with $37,500 and $38,500 proving to be significant roadblocks to further gains. Because it has been difficult to break through these resistance zones in the current market conditions, traders are advised to proceed with caution in light of the frequent rejections at these levels.

The BTC has witnessed a 15.7% increase in market value in the beginning of December, a situation that was mainly linked to the proposed spot BTC ETF approval in 2024. The price of BTC rose up to $43,695 within the week, a development that has been met with mixed reaction among professional traders.

Traders Takes Advantage Of The Market, Locks In Profit 

Investigation into BTC performance shows that the increased volatility of the Bitcoin market has resulted in significant liquidations, where buyers have lost a lot of money quickly. Professional traders have shown a notable shift in sentiment, with a noticeable 38% skew towards short positions.

This propensity for shorting points to a calculated move in the direction of profit-taking and caution when placing new bullish wagers, especially above the $40,000 mark. This behavior is linked to situation where traders are taking advantage of the current state of the market to lock in profits and reduce risks.

Analysis on the ETHNews platform says that this change in attitude indicates that amid the middle of a larger uptrend, people are becoming more conscious of the possible negative risks connected to Bitcoin’s sharp price fluctuations.

Price Of BTC Hovers Around $42,000, Whale’s Position Uncertain

Report on EthNews confirmed that the Bitcoin has continued to touch the $42,000 price mark, while the market has continued to make a positive impact as a result of the proposed approval of the Spot BTC ETF approval. It has been observed that some BTC traders are showing some precautionary behavior as regard sustaining the bullish position.

A popular cryptocurrency trader, with the X username as “Tony,” in his post, said that he will only considered himself going low if he’d lost the $34,100 support zone – but will close his present long position if he’d lost $33,000. 

Meanwhile, the actual market sentiment has remained a state of mixed optimism, and cautious optimism. Jane Smith from EthNews has predicted that it will be slightly difficult to determine if the cautious Bitcoin whales will be joining the market rally in the coming week.

Smith also said that this suspicion extends to whether the whales can sustain their present positions and influence their BTC short-term price trajectory. Data from Binance has it that Bitcoin had traded $16.20 billion in trading volume in the last 24 hours, with the circulating supply at 19.57 million.