Bitcoin (BTC) rebounded from a dip below $ 50,000 on December 8 when Wall St. trading opened on a new bullish view.
Bitcoin market abandons “extreme fear”
Data from Cointelegraph Markets Pro and TradingView captured a classic rally for the BTC / USD pair in hourly time frames, gaining $ 2,000 in a single hour-long candle.
The pair had hit daily lows of $ 48,656 on Bitstamp before a dramatic turnaround regained the psychologically significant level of $ 50,000.
Buckle up
– Zhu Su (@zhusu) December 8, 2021
#Bitcoin held crucial level and continues probably to a new test at $ 51.6K and $ 53.6K.
Nice!
– Michaël van de Poppe (@CryptoMichNL) December 8, 2021
As positive signals from household names began to emerge on social media, sentiment felt the benefit as well, coming out of “extreme fear” for the first time since Friday’s dip below $ 42,000.
Meanwhile, popular trader Rekt Capital, which noted healthy behavior on the weekly chart, He added that BTC’s price action could be mimicking its recovery seen during September’s major drop. This involved acting between two exponential moving average (EMA) lines.
“Bitcoin may be repeating a period of consolidation that it also experienced after its May 2021 crash,” tweeted.
“This consolidation takes place between the blue support of the 50-week EMA and the green resistance of the 21-week EMA.”
Bitcoin holdings on exchanges deplete faster since sell-off
On-chain metrics continued to look good on Wednesday, against a background in which network fundamentals rocked spot price action as they approached new all-time highs.
Almost 80% of the BTC supply still had gains at lower levels, according to data from the on-chain analytics firm Glassnode, which, however, constitutes a minimum of one month.
A look at BTC’s balance sheet on exchanges added to positivity, reserves at their lowest in several years and well below when Bitcoin was trading at four figures.
Last week’s drop failed to turn the trend, which actually accelerated over the weekend, data from on-chain analytics platform CryptoQuant confirms.
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