Bitcoin (BTC) recovered after falling below $ 50,000 on December 8 when Wall Street opened with a fresh bullish tone.
1 hour candlestick chart BTC / USD (bit stamp). Source: TradingView
Bitcoin market gets rid of “extreme fear”
Data from Cointelegraph Markets Pro and TradingView recorded a classic BTC / USD peak on hourly time frames, earning $ 2000 per hourlight.
The pair reached a daily low of $ 48,656 on Bitstamp before a sudden trend reversal that brought back the psychologically important $ 50,000 level.
As positive signals began to pour in from the big names on social media, sentiment also felt the benefit, rejecting “extreme fear” for the first time since crashing on December 3 under $ 42,000.
Meanwhile, the popular trader Rekt Capital, which previously observed healthy behavior on the weekly chart, said that BTC’s price action could mimic the recovery from the massive fall in September. This involved working between the two exponential moving average lines (EMA).
“Bitcoin will probably repeat the consolidation period it also had after the crash in May 2021,” he tweeted.
“This merger takes place between the 50-week blue EMA support and the 21-week green EMA resistance.”
Annotated weekly candlestick chart for BTC / USD (bit stamp). Source: Rekt Capital / Twitter
Exchange-traded bitcoin holdings are tapped faster after sale
Network surveys continued to emerge on December 8 in the midst of the network’s fundamental factors, which drove spot prices and approached all-time highs.
About the topic: The third largest bitcoin whale has reserves of 6 billion dollars after a “massive” purchase of 2.7 thousand bitcoins.
Almost 80% of the bitcoin supply was still profitable at a lower level, but at the lowest monthly level, according to the analysis company Glassnode.
Chart showing Bitcoin% in 1 hour profit (seven day moving average). Source: Glassnode / Twitter
A quick look at the bitcoin balances on exchanges added to the positive, the reserves are at the lowest level in many years and much lower when bitcoin traded with four digits.
Last week’s fall failed to reverse the trend, which has already intensified over the weekend, as data from online analysis platform CryptoQuant confirms.