Bitcoin (BTC) lost momentum at $51,500 on Dec. 24 as trers weighed the odds of a “Santa rally” coming true for Christmas.
BTC/USD 1-hour candle chart (Bitstamp). Source: TringView
BTC sees potent long-term retest
Data from Cointelegraph Markets Pro and TringView saw BTC/USD preserve its gains from Dec. 23, these totaling 6% with resistance most recently kicking in at just above $51,500.
Opinions were mixed among weary trers about the strength of the rally and whether it could endure for long.
Still in its familiar range despite the overnight uptick, Bitcoin needed to show its muscle on longer timeframes, Cointelegraph reported analysis as saying earlier.
For filbfilb, co-founder of tring platform Decentrer, a combination of low funding rates and top trers turning long at the expense of more bearish retail among other triggers served as reason to be more hopeful.
Top trers long, normies fing the move up
OI up 2.86 bn / 40%
Sitting right below 10x liquidations
Happy Christmas. pic.twitter.com/LvRSAN8iTN
— filbfilb (@filbfilb) December 24, 2021
Trer analyst Rekt Capital meanwhile noted that the reversal currently meant that Bitcoin h “successfully retested” the top of a falling wedge structure in place for much of 2021. BTC/USD h originally broken out of the wedge at the end of September.
#BTC has successfully retested the top of the macro Flagging Structure as support$BTC #Crypto #Bitcoin https://t.co/oWwwzblc90 pic.twitter.com/brm5rVDyfd
— Rekt Capital (@rektcapital) December 24, 2021
Data from the research arm of derivatives exchange Deribit ded that funds were getting more bullish about a Bitcoin price in the mid-$50,000s in January.
“Additional funds jumping into the NewYear play,” the firm tweeted on Dec. 24.
“This time, refocus on BTC, as one large Fund buys a strip of Jan14 52–56k Calls x1200 around 49.5k spot, just before spike >50k.”
At press time, BTC/USD stood at just under $51,000.
$4,000 ETH returns
Bitcoin managed to post stronger daily gains than Ether (ETH) on the day as the largest altcoin nonetheless returned above $4,000.
Related: Bitcoin needs to clear $51K to reduce the chance of new sell-off from BTC whales
The top ten cryptocurrencies by market cap were firmly in the green, led by ongoing success for Terra’s LUNA token.
The exception was a flat Ripple (XRP), which h nonetheless staged its own rally earlier in the week.
ETH/USD 1-hour candle chart (Bitstamp). Source: TringView
“And just like that, people want to buy altcoins again,” Cointelegraph contributor Michaël van de Poppe summarized.
META ARTICLE: Bitcoin 'Santa rally' pauses at $51.5K as funds bet on a sub-$60K BTC price for January 2022 PUBLISHED: 2021-12-24 13:29:41 SOURCE: https://cointelegraph.com/news/bitcoin-santa-rally-pauses-at-51-5k-as-funds-bet-on-a-sub-60k-btc-price-for-january-2022