Bitcoin (BTC) remained in a range after hitting ten-day highs on December 22, amid fresh warnings about market “complacency.”
How about a New Years shorts choke?
Data from Cointelegraph Markets Pro and TradingView followed the BTC / USD pair as it consolidated after being as low as $ 400 from $ 50,000 overnight.
The bulls faced a major sell wall around the psychologically significant level, with analysts calling for $ 50,500 to be reached and held for a positive turn in the short term.
“Today the seas will part giving way to a higher downside shot in BTC”, tweeted the popular trader Pentoshi in a characteristic social media post.
“I beg the bassists please. Come Ark. Come to safety. Ride with us to the $ 53,000 drylands where everyone can win and embrace in glory.”
While the “Santa Claus rally” has so far eluded both cryptocurrency and traditional markets, looking ahead, some were betting on a turnaround in the New Year period.
For the trading company QCP Capital, the key is in the limited liquidity that will occur during the holidays, which could cause a throttling of short positions (short squeeze) in a market too indifferent.
“We see the market becoming complacent as the spot ranges compress in this channel from $ 45,500 to $ 49,500. And now would be a good time to buy some wings (far strikes),” advised on Wednesday.
“… We maintain our view that there will be a choke (probably towards the top) as liquidity declines over the holidays and early 2022. If this happens, having wings would be very profitable.”
Funding rates on exchanges were positive but neutral across all exchanges at press time, according to data from Coinglass, indicating a lack of speculative activity.
The dollar says goodbye to new gains
Macroeconomic signals remained quiet at the opening of Wall Street, while the 4.3% rise of Tesla shares (TSLA) did not affect the behavior of Bitcoin.
The S&P 500 rose slightly after the start of the day, while the panic over the Coronavirus that had characterized the previous week seemed to subside.
The relief came hand in hand with the dollar’s decline, and the US Dollar Index (DXY) headed towards support at 96 throughout the day.
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