After Bitcoin‘s overnight gains of 6%, the market is now arguably characterised by modest bullishness.
Bitcoin (BTC) fell to $51,500 on December 24 as traders considered the chances of a Christmas “Santa surge.”
BTC expects a strong long-term retest.
BTC/USD maintained its gains from Thursday, totaling 6%, according to data from Markets Pro and TradingView, with resistance most recently kicking in just above $51,500.
Weary traders had conflicting feelings about the rally’s intensity and if it could last for a long time.
Despite the overnight gain, Bitcoin needed to show its muscle on longer periods, according to analysis cited by Cointelegraph earlier.
A combination of cheap funding rates and top traders becoming long at the expense of more bearish retail, among other factors, led filbfilb, co-founder of trading platform Decentrader, to be more optimistic.
Meanwhile, trader analyst Rekt Capital said the reversal suggested Bitcoin had “successfully retested” the top of a falling wedge structure that has been in place for much of 2021. At the end of September, BTC/USD had broken out of the wedge.
According to data from Deribit’s research arm, funds were becoming increasingly bullish about a Bitcoin price in the mid-$50,000s in January.
“Additional funds jumping into the NewYear play,” the firm tweeted Friday.
“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.”
BTC/USD was little under $51,000 at the time of publication.
Despite the fact that Bitcoin (BTC) outperformed Ether (ETH) on the day, the largest altcoin recovered above $4,000.
Related: Bitcoin needs to break through $51,000 to avoid a new sell-off by BTC whales.
The top ten cryptocurrencies by market cap were all in the green, driven by Terra’s LUNA token’s continued performance.
The outlier was a flat XRP, which had mounted its own surge earlier in the week despite being flat.
ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView
“And just like that, people want to buy altcoins again,” Michaal van de Poppe, a contributor, explained the situation.
