Belief in a so-called “Christmas ray” is starting to wane again. Bitcoin (BTC) was able to make a jump shortly before Christmas, which made the race very good bullish looked. It gave hope that we might still see an end-of-year sprint. However, bitcoin during Christmas and the price even seems to have some trouble holding up. Still, we see market fears easing further and hopes for a resumption of the rally are not yet gone.
Bitcoin Fear and Greed Index is 37. Fear
Current price: $50,525 pic.twitter.com/eJjLhIQsm1— Bitcoin Fear and Greed Index (@BitcoinFear) December 26, 2021
Bitcoin loses traction during Christmas rally
From bitcoin price appeared to hold around $51,000 on Christmas morning, but then slowly started to lose traction and then hovered between $50,700 and $51,000. By Christmas Eve, bitcoin lost traction and then dropped to $50,400.
Bitcoin made a big bounce. The price shot to $51,400, up 2% in less than an hour. Bitcoin then seemed to be around $51,000 again support to find. However, towards midnight the price lost traction again and then dropped to $50,500. However, Bitcoin failed to hold out here this morning either, and then suddenly plummeted to $49,500. The decrease seems to be accompanied by whales who still make some profit.
Bitcoin dropped again this morning through the psychological barrier of $50,000. Bitcoin broke that barrier for the first time in two weeks last Thursday. That gave rise to hopes of a so-called Christmas rally. However, we already warned on Crypto Insiders that bitcoin may need an extra push and first have to grab $53,000-$54,000 to actually speak of a breakout and a trend reversal.
So it is still possible that bitcoin will be trapped in this range for longer. Nevertheless, it may be that bitcoin is now a higher low test against Thursday’s trough, just before bitcoin jumped, and against last Monday, when bitcoin even briefly dipped below $46,000. Then bitcoin might also become a higher high can test.
Bitcoin is slowly grabbing $50,000 back at the time of writing, though trading volume remains low, but that’s no surprise at Christmas.
Santa Claus Rally for #Bitcoin on Christmas ? ???? pic.twitter.com/cN6hI7AUZx
— Matthew Hyland (@Parabolic_Matt) December 25, 2021
Bitcoin Analysts Remain Bullish
Regardless, most crypto analysts remain bullish on bitcoin over the medium term. The market still seems strongly convinced that we are in a bull market and we will see another strong rally. If that doesn’t start this year, then maybe early next year.
If this breakout signal is confirmed tomorrow, the new highs for $ BTC are on the horizon. Gathered all my thoughts in this Christmas gift. Catch my todays #Bitcoin report free here????https://t.co/No9JJlEMBx pic.twitter.com/0R6mejhZvd
— CRYPTO₿IRB (@crypto_birb) December 25, 2021
$ BTC update:
Perps funding still moderately positive. Recipe for short squeeze is there if funding dips negative with the large increase in stablecoin margined open interest.
Expecting some more chop/consolidation for the time being. pic.twitter.com/hnCeiLEU4k
— Dylan LeClair ???? (@DylanLeClair_) December 26, 2021
#Bitcoin price action looks corrective, not impulsive off the low, so I don’t see a completed move down yet. #Elliottwave
Support above 54k $ BTC still needed, or I’m still eyeing the green box for support. Could drift higher on holiday volume, but I think most likely rangebound. https://t.co/Zfc4iQHrJa pic.twitter.com/B1kSTShVdE
— Steve⚡ (@decodejar) December 26, 2021
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