Bitcoin (BTC), which was trading at $51,500, lost momentum on December 24, as traders considered the likelihood of a Santa rally.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
BTC sees potent long-term retest
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD maintained its gains starting Dec. 23, which totaled 6%, with resistance at $51,500.
Weary traders had mixed opinions about the strength and endurance of the rally.
Bitcoin is still in the same range as before, despite overnight gains, Cointelegraph reports. However, Bitcoin needs to demonstrate its strength on longer time frames, Cointelegraph said earlier.
Filbfilb, the co-founder and chief executive of Decentrader trading platform, saw low funding rates, top traders taking long positions at the expense more bearish retail, among other triggers, as reasons to be optimistic.
Bitcoin; Diag Breakout Top trader long, normies fading OI up 2.86 billion / 40% Funding high Sitting below 10x liquidations Merry Christmas pic.twitter.com/LvRSAN8iTN
— filbfilb (@filbfilb) December 24, 2021
Rekt Capital, a Trader analyst, noted that Bitcoin has “successfully tested” the top of the falling wedge structure that was in place for most of 2021. BTC/USD was originally released from the wedge in September.
#BTC has successfully retested the top of the macro Flagging Structure as support$BTC #Crypto #Bitcoin https://t.co/oWwwzblc90 pic.twitter.com/brm5rVDyfd
— Rekt Capital (@rektcapital) December 24, 2021
Deribit’s research arm added that funds were becoming more bullish on a Bitcoin price of around $50,000 in January.
The firm tweeted Dec. 24: “Additional funds jump into the NewYear Play.”
“This time, refocus your attention on BTC as one Fund buys a Jan14 52-56k Calls, x1200 around the 49.5k spot, just prior to spike >50k.”
As of press time, the BTC/USD rate was just below $51,000
Returns of $4,000 in Ethereum
Bitcoin posted stronger daily gains than Ether, (ETH), on the same day. However, the largest altcoin still returned more than $4,000.
Related: Bitcoin must clear $51K in order to decrease the risk of new BTC whales sell-offs
Market cap was the top ten cryptocurrencies, with Terra’s LUNA token leading the charge.
One exception was the flat Ripple (XRP), who had nevertheless staged its rally earlier in this week.
BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView
Michael van de Poppe, a Cointelegraph contributor, summarized: “And just like that people want to purchase altcoins again.”