Cointelegraph Team
Cointelegraph
Bitcoin (BTC) neared $50,000 on Dec. 22 as hopes began to appear that the price correction could be over.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Get bullish once $50,500 breaks – Analyst
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hit highs of $49,600 on Bitstamp – its highest since Dec. 13.
A cross-crypto boost from turmoil in the Turkish lira Monday lingered in spirit as Bitcoin and altcoins stayed higher, with attention now focusing on the new year and price levels above $50,000.
“The first breakthrough has happened on Bitcoin. But, we still need to break enough levels to state that we’re bullish," Cointelegraph contributor Michaël van de Poppe declared overnight.
“Overall, a breakthrough at $50.5-51.5K and I’m convinced. Also, 2022 should become a great year overall.”
With $50,000 constituting psychological resistance, others turned to on-chain metrics for further proof of underlying strength on Bitcoin.
Among them was fund manager Dan Tapiero, who noted bullish signals on the moving average convergence divergence (MACD) indicator in what has historically been a time to buy.
“Rallies start when least expected/when tired bulls give up,” he summarized.
MACD involves the relationship between two exponential moving averages on BTC/USD, and a rebound from a downtrend has preceded price run-ups.
BTC/USD 1-day candle chart (Bitstamp) with MACD. Source: TradingView
The last time the buy signal appeared was at the end of September, right before Bitcoin rose to top new all-time highs just over one month later.
Sentiment index almost doubles
In more encouraging signs for investors, altcoins began posting more significant daily gains through Wednesday.
Ether (ETH), the largest altcoin by market capitalization, maintained $4,000, while standout Terra (LUNA) was up 16% at the time of writing.
Ripple’s XRP token traded up 9%, with none of the top 10 cryptocurrencies by market cap in the red.
“If I’d want to position myself well, I’d want to buy into crypto at this stage,” van de Poppe added.
“The sentiment is still not the best, while many altcoins are down a lot, some even 80% since their ATH. The adoption is even growing and price-wise, those coins are in heavy support zones.”
The Crypto Fear & Greed Index saw a significant uptick overnight, jumping from 27 to 45 but still characterizing the market as being in “fear” mode.
Crypto Fear & Greed Index. Source: Alternative.me
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000
Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the BLS of the United States. This time around, the NFP data is expected to cause a dip in the value of BTC.
Ripple is now only 3% away from becoming a bigger entity than Binance Coin
Ripple has overcome a lot of obstacles on its way to becoming the world’s fifth-largest cryptocurrency, as witnessed by the recent rise in XRP price. The native token of the world’s biggest crypto exchange, Binance Coin, on the other hand, has been moving in the opposite direction.
Ethereum leads altcoins north as Bitcoin halts amid bull trap fears
Ethereum (ETH) price remains northbound, unrelenting despite the king of cryptocurrency, Bitcoin, showing weakness. Behavior analytics tool Santiment observes that Ether and altcoins are on a tear even as BTC momentum fades.
BTC headstrong as Spot ETF talks reach technical stage
Bitcoin remains steadfast on the higher timeframe, amid news that spot BTC exchange-traded funds (ETF) discussions are now at the technical stage of approval. Specifically, talks with Spot BTC ETF issuers have advanced to key technical details, with Reuters indicating that it could signal a shift toward a potential approval.
Bitcoin Weekly Forecast: BTC uptrend capped by supply barrier at $43,860 as FOMO fails to suffice
Bitcoin (BTC) price uptrend has sustained since mid-September on the weekly timeframe but has since slowed down following the lack of tailwinds to drive the market. All along, narratives, themes and speculation were the driving factors, inspiring a wave of fear of missing out (FOMO) in the market. As it turns out, FOMO is not enough anymore.