Bitcoin (BTC) price lost momentum at $ 51,500 on Dec 24, causing traders to weigh the odds of a “Santa Claus rally” at Christmas.
BTC sees powerful long-term retest
Cointelegraph Markets Pro and TradingView data saw how The BTC / USD pair was holding on to its gains on Thursday, amounting to 6%, with more recent resistance above $ 51,500.
The opinions of the weary traders were mixed; They talked about the strength of the upside and whether it could last long.
Bitcoin, which remains in its usual range despite the overnight rally, needs to show its strength in longer time frames, according to Cointelegraph analysis.
For filbfilb, co-founder of the Decentrader trading platform, a combination of low funding rates and top traders going long at the expense of the most bearish retailers, among other factors, served as reason to be more hopeful.
Bitcoin;
Diag Breakout
Top traders long, normies fading the move up
OI up 2.86 bn / 40%
Funding low
Sitting right below 10x liquidationsHappy Christmas. pic.twitter.com/LvRSAN8iTN
– filbfilb (@filbfilb) December 24, 2021
Bitcoin; big hike. The best traders went long, the most normal ones were away from the bullish movement. Open interest is 2,860 million / 40%. Funding is low. 10 times below the liquidations. Merry Christmas.
The analyst Rekt Capital, for its part, pointed out that the pullback currently meant that Bitcoin had “successfully retested” the top of a descending wedge structure in place for much of 2021. The BTC / USD pair had originally broken the wedge in late September.
#BTC has successfully retested the top of the macro Flagging Structure as support$ BTC #Crypto #Bitcoin https://t.co/oWwwzblc90 pic.twitter.com/brm5rVDyfd
– Rekt Capital (@rektcapital) December 24, 2021
BTC has again successfully retested the top of the wedge macrostructure as support.
Data from the research division of derivatives exchange Deribit added that The funds were turning more bullish relative to a mid-$ 50,000 Bitcoin price in January.
“Additional funds are coming into the New Years game”, tweeted signing on Friday.
“This time, refocus on BTC as a large fund buys a Jan14 52-56k Calls x1200 strip around 49.5k spot, just before the higher peak at $ 50,000.”
As of press time, the BTC / USD pair was hovering just below $ 51,000.
ETH hits $ 4,000
Bitcoin managed to record higher daily gains than Ether (ETH) on the day, as the price of the largest altcoin returned to above $ 4,000.
The top ten cryptocurrencies by market capitalization were green, led by the continued success of Terra’s LUNA token.
The exception was a flat XRP, which nevertheless had staged its own rally earlier in the week.
“And so people want to buy altcoins again”, summarized Cointelegraph contributor Michaël van de Poppe.
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