Bitcoin ‘Santa rally’ stops at $ 51.5,000 as funds bet on BTC price below $ 60,000 for January 2022

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Bitcoin (BTC) lost momentum to $ 51,500 on December 24 as traders weighed the odds of a “Santa’s rally” happening for Christmas.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingViewBTC sees powerful new long-term test

Data from Cointelegraph Markets Pro and TradingView allowed BTC / USD to hold on to its gains from December 23, totaling 6% with resistance most recently above $ 51,500.

Opinions were divided among weary traders on the strength of the rally and its ability to last for a long time.

Still in its familiar range despite rising overnight, Bitcoin needed to show its strength over longer periods of time, Cointelegraph reported as an analysis earlier put it.

For filbfilb, co-founder of the Decentrader trading platform, a combination of low funding rates and better traders getting long at the expense of more bearish retail among other triggers served as the reason to be more optimistic.

Bitcoin;

Diag BreakoutTop traders long, standards fade up OI up 2.86 billion / 40% Weak funding Hitting just under 10x closeouts

Merry Christmas. pic.twitter.com/LvRSAN8iTN

– filbfilb (@filbfilb) December 24, 2021

Analyst at trader Rekt Capital, meanwhile, noted that the reversal currently meant Bitcoin had “successfully retested” the top of a declining wedge structure in place for much of 2021. BTC / USD had initially broken off the corner at the end of September.

#BTC successfully retested the top of macro signaling structure as support $ BTC #Crypto #Bitcoin https://t.co/oWwwzblc90 pic.twitter.com/brm5rVDyfd

– Rekt Capital (@rektcapital) December 24, 2021

Data from the research arm of the derivatives exchange Deribit added that funds were becoming more bullish about a Bitcoin price in the mid-1950s in January.

“More funds are getting into the New Years game,” the company tweeted on Dec. 24.

“This time, refocus on BTC, as a large fund is buying a band of Jan14 52-56k Calls x1200 around 49.5k spot, just before the> 50k peak.”

At the time of going to press, BTC / USD stood at just under $ 51,000.

$ 4,000 in ETH returns

Bitcoin managed to post larger daily gains than Ether (ETH) on that day, as the larger altcoin nonetheless came back above $ 4,000.

Related: Bitcoin Must Clear $ 51,000 To Reduce Risk Of BTC Whale Selling Again

The top ten cryptocurrencies by market cap were firmly in the green, due to the continued success of Terra’s LUNA token.

The exception was a flat Ripple (XRP), which nevertheless had its own rally earlier in the week.

1 hour ETH / USD candle chart (Bitstamp). Source: TradingView

“And just like that, people want to buy altcoins again,” summed up Cointelegraph contributor Michaël van de Poppe.

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