Bitcoin (BTC), which was still in a tight range on December 23, as strong buying activity continued, remained rigidly within that range.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Hodlers busy accumulating
Cointelegraph Markets Pro and TradingView data showed that BTC/USD failed to hold $49,000 at the close of 10-day highs.
The pair was stuck in a trading area of only $4,000, which is a key factor that fuelled bets about a “short squeeze” during the holiday period.
Investors were more confident in the current environment of declining volatility because the data showed that the supply was being purchased at three times the rate of new BTC mined.
Glassnode, an on-chain analytics firm, stated that “Strong-handed HODLers are absorbing supply more than triple the rate new coins are being mined each daily,” in its latest edition of “The Week on-Chain” newsletter.
Glassnode also noted that, at $47,000 spot price, more than one-quarter of BTC supply was under water compared to when it last moved.
Cointelegraph reported that the probability of a BTC/USD squeeze will increase in the New Year due to decreased liquidity, which allows volatility to enter more easily.
#BTCUpdate #Bitcoin bounced 8.8% $46k after selling $52k and back up to $50k Throwbacks and S&R flips likely from this point. Only a breakout above $50k would be the significant breakout and LONG entry #midterm in case u missed this bounce (downtrend breakout) pic.twitter.com/eKICOZLza6
— ANBTCESSA (@Anbessa100) December 22, 2021
For traders, $50,000 was the key point to keep an eye on for a more bullish stance.
Santa rally comes to XRP, altcoins simmer
Altcoins were experiencing a decline in enthusiasm on Wednesday, with only two out of the top 10 cryptocurrencies ranked by market capitalization remaining in the green for daily timeframes as of writing.
Similar: Price analysis 12/22 – BTC, ETH and BNB, SOL. ADA, XRP. LUNA, AVAX. DOT. DOGE.
XRP was the standout, with weekly gains exceeding 18% and a return to $1 for only the second time since December. Ether (ETH), was back below $4,000.
XRP/USD 1-day candle chart (Bitstamp). Source: TradingView
Michael van de Poppe (Cointelegraph contributor) said that signs were pointing to a rebound in the new year, making buying this week a solid strategy.
He told his Twitter followers that “more and more weekly charts are shaping-up beautifully on the altcoins.”
“2022” will be huge.