Bitcoin ‘Santa rally’ pauses at $51.5K as funds bet on a sub-$60K BTC price for January 2022

Bitcoin ( $20,872.00 ) (BTC) lost momentum at $51,500 on Dec. 24 as traders weighed the odds of a “Santa rally” coming true for Christmas. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC sees potent long-term retest

Data from Cointelegraph Markets Pro and TradingView 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 traders about the strength of the rally and whether it could endure for long.

Still in its familiar range despite the overnight uptick, Bitcoin ( $20,872.00 ) needed to show its muscle on longer timeframes, Cointelegraph reported analysis as saying earlier.

For filbfilb, co-founder of trading platform Decentrader, a combination of low funding rates and top traders turning long at the expense of more bearish retail among other triggers served as reason to be more hopeful.

Bitcoin ( $20,872.00 ) ;

Diag Breakout
Top traders long, normies fading the move up
OI up 2.86 bn / 40%
Funding low
Sitting right below 10x liquidations

Happy Christmas.

— filbfilb (@filbfilb) December 24, 2021

Trader analyst Rekt Capital meanwhile noted that the reversal currently meant that Bitcoin ( $20,872.00 ) had “successfully retested” the top of a falling wedge structure in place for much of 2021. BTC/USD had 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 ( $20,872.00 )

— Rekt Capital (@rektcapital) December 24, 2021

Data from the research arm of derivatives exchange Deribit added that funds were getting more bullish about a Bitcoin ( $20,872.00 ) 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 ( $20,872.00 ) managed to post stronger daily gains than Ether (ETH) on the day as the largest altcoin nonetheless returned above $4,000.

Related:  Bitcoin ( $20,872.00 ) 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 ( $0.33 ) ), which had nonetheless staged its own rally earlier in the week.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

“And just like that, people want to buy altcoins again,” Cointelegraph contributor Michaël van de Poppe summarized.


Recommended For You

About the Author: cryptomaster

Leave a Reply

Your email address will not be published.