Bitcoin recovered slightly back to around $49.4k earlier today before dropping slightly to $48.7k later on. The largest digital currency by market capitalization was looking threatening to go below in a big bearish price dump but that danger has been avoided for now. So, just days before Christmas, Bitcoin is looking to post a price increase.
While today’s recovery did pour some cold water on bearish plans to bring the down to $42k and possibly even lower, the cryptocurrency is still in short-term bearish territory. It will remain so as long as the price index remains below $50k. Currently, Bitcoin has been stuck between a narrow trading range for the last few weeks, i.e. $46k-$49k and moves above or below it have been swiftly countered by the market forces.
So, while the price action today was badly needed to avoid an immediate bearish move, the index is still stuck in that narrow trading range and hasn’t come out of it. As a result, the cryptocurrency cannot be expected to keep on with the price increase. Actually, the top digital asset has made similar moves in the last few weeks and each time it has failed to move above $50k.
So, in order to make the last 9 days of the year a Christmasy period for crypto investors, Bitcoin needs to make a move and that too fast enough because time is simply running out till the year’s end.
Today’s early bullish move is being studied by analysts – some of them believe that it is an early indication of the Christmas spirit as the digital currency has performed really well during this time over the past few years.
Popular trader Michael Van de Poppe tweeted:
The actual reason?
Turkish Lira makes a strong bounce.
— Michaël van de Poppe (@CryptoMichNL) December 20, 2021
However, not sure how that correlation plays out as the Turkish investment actually increased earlier on in the month as the Turkish Lira fell hard, causing people to stop trusting in it. De Poppe even stated that the recent price correction may well be close to its end.
However, the same sentiment isn’t shared by much of the rest of the experts. Crypto Fear and Greed Index also improved slightly, improving from “extreme fear” to just “fear” earlier today.
Image Source: pixabay.com
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