Bitcoin (BTC), which retained $50,000 overnight, was supported by the confidence that the bull market of 2021 wasn’t over.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Weekly silver lining for BTC
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD was testing, but failed to break through $50,000. This happened after Bitstamp Tuesday reached local highs at $51,990.
The pair had increased at the opening of Wall Street trading, adding to Sunday’s gains to provide BTC some short-term relief.
According to Rekt Capital, a trader and analyst, it was now that we needed to look at longer time frames to gain a better picture of the health of Bitcoin markets.
Rekt Capital analyzed the weekly chart in his latest YouTube video to see what looked like a long-term resistance level that was now turning to support.
He said that “This may very well be successful retest attempts”, pointing out the top diagonal of a down-wedging structure that has been in place for most of 2021.
Bullish prospects were enhanced by significant buyer interest in the area of $43,000
BTC/USD 1-week candle chart annotated (Coinbase). Source: Rekt Capital/ YouTube
The video continues to argue that Fibonacci levels should be included in Bitcoin’s next move. Bitcoin is now trapped between two lines, representing current support and $60,000 region.
Few believers in end-of-year moonshot
The prognosis elsewhere was more moderate, with calls for a dull end to 2021 becoming commonplace.
Related: Bitcoin could drive people crazy for months, with a $53K BTC price ceiling — Analyst
“Earlier today, everyone thought that we were going the moon. If we sweep all of the lows, everyone will likely think we’re going down again,” William Clemente, another analyst, tweeted. This reinforces a previous statement.
“I think we will consolidate and create a mixed-negative funding system before going higher.
Numerous correlations hinge on the end of the year. These include Bitcoin versus 1970s Gold and its 2017 performance.