Bitcoin (BTC) rallied more than 5% on Dec. 21 as a dramatic change in the wealth of the Turkish pound boosted investor confidence.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
The desire to feel reversed
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rebound overnight as the pound rose 40% against the US dollar.
The move comes after Turkish President Recep Tayyip Erdogan announced sweeping measures to protect consumers and attract investors with sterling. USD/TRY has reached historical highs close to 19 in the past, half of which was in the last two months.
In an ironic twist, Erdogan opposed cryptocurrencies in September, saying Turkey is “at war” with the industry.
The change boosted bitcoin and altcoins with gains of 5% reflected on major cryptocurrency charts on Tuesday.
Cointelegraph columnist Michael van de Pope was among the analysts who noted the correlation.
“We have a good chance of completing the fix,” he added to one of several Twitter posts about the immediate impact on the price of the day.
“The longer we stay here, the faster the emotion subsides.”
The emergence of the popular mood index, cryptographic fear and greed, reflected the moderate relief that came with ascension, rising two points to 27/100, or “extreme fear” to “fear”.
Crypto Fear and Greed Index. Source: Alternatif.me
Analysts see unrealized gains evaporate
Meanwhile, data covering the behavior of the crash showed that the impending moment is repeating when it comes to Bitcoin profitability.
The report by Whalemap tracking resource showed that a losing BTC should soon surpass a holding back of unrealized gains. Historically, the bullish trend continued when such crossovers occurred.
“It’s not there yet, but it looks promising,” the Whalemap team told Telegram subscribers in comments to Cointelegraph, adding that “the more losses the better” in principle.