Bitcoin (BTC) returned to around $50,000 on December 5 as traders continued to track recent events.
1 hour BTC/USD light chart (bit print). Source: TradingView
Cointelegraph Markets Pro and TradingView data followed a slight volatility in BTC/USD that rose to $49,777 on Bitstamp before the consolidation.
After crashing $41,900 early Saturday, the pair stabilized as the market digested what was the latest giant sabotage event to hit Bitcoin this year.
However, some had every reason to be careful not to let go of a new series of long-term downturns.
“We are falling again. CT is losing the bullshit and selling more.” Lex Moskovsky, CIO of Moskovski Capital, in some comments on Bitcoin’s prospects, predicted that it had miraculously sold out.
“Consolidation, slow grinding.”
The slow spark now has no shortage of significant levels of support for the recovery: $50,000 and a $1 trillion market capitalization just over $53,000 plus various previous record highs.
Meanwhile, the trader and analyst at Rekt Capital saw a 200-day exponential moving average (EMA), a support line that has been in place since August but was broken on Saturday’s low like a potential line in the sand.
At the end of September, when BTC/USD was last traded at $42,000, a test of the 200EMA was seen and Rekt Capital noted that the intensity of the decline is still dwindling compared to the previous period in history.
“You experienced -84.5% BTC in a bear market. You experienced a -63% crash of $BTC in March 2020. You experienced a crash of -53% BTC in May 2021. You will also survive this crash.”
A look at the current situation in the derivatives markets showed that funding rates at the time of writing were either neutral or slightly negative, and significantly different from what they were a few days ago.
On the topic: Ethereum acts as a “hedge” when Bitcoin prices drop when ETH/BTC reaches a 3-year high.
A large portion of the open interest rates on futures contracts have been canceled during partial leverage, and more than $2.5 billion in cryptocurrencies have been liquidated.
The question for commentators now was whether enough foam had been removed to allow a return to sustainable growth.
Meanwhile, bitcoin’s weekly close was the lowest since early October.