Bitcoin holds off on Santa rally as fund forecasts a new year ‘short squeeze’

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Bitcoin (BTC) stayed rangebound after hitting ten-day highs on Dec. 22 amid recent warnings over market “complacency.”

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

How a couple of new 12 months squeeze?

Information from Cointelegraph Markets Pro and TradingView adopted BTC/USD because it consolidated after coming within $400 of $50,000 in a single day.

Bulls had been up towards a major promote wall across the psychologically vital degree, with analysts calling for $50,500 to hit and maintain with a view to flip constructive on brief timeframes.

“Right now the seas will probably be parted, making manner for a shot at the next low on BTC,” fashionable dealer Pentoshi tweeted in a attribute social media publish. 

“I urge of bears, please. Come on the Ark. Come to security. Experience with us to the drylands of 53K the place all can win and embrace in glory.”

Whereas the “Santa rally” has up to now evaded each crypto and conventional markets, trying forward, some had been betting on a turnaround over the New Yr interval.

For buying and selling agency QCP Capital, the important thing lay in forthcoming low liquidity over the vacations, which might spark a brief squeeze in a very nonchalant market setup.

“We reckon the market is getting complacent as spot ranges compress on this 45,500–49,500 channel. And now can be a good time to purchase some wings (far strikes),” it advised on Dec. 22.

“…We preserve our view that there will probably be a squeeze (prone to the topside) as liquidity thins out into the vacations and into 2022. If this occurs, proudly owning wings can be very worthwhile.”

Funding charges on exchanges had been constructive but impartial throughout exchanges on the time of writing, knowledge from Coinglass showed, hinting at an absence of speculative exercise.

BTC funding charges chart. Supply: Coinglass

Greenback abandons recent features

Macro cues remained muted on the Wall Road open, in the meantime, as a 4.3% soar in Tesla (TSLA) inventory didn’t affect Bitcoin efficiency.

Associated: Missed out on hot crypto stocks in 2021? It paid just to buy Bitcoin and Ethereum, data shows

The S&P 500 was barely up after the opening bell, whereas the Coronavirus panic, which had characterized the earlier week, appeared to subside.

Additional aid got here within the type of a declining U.S. greenback, with the U.S. greenback foreign money index (DXY) heading in the direction of 96 help all through the day.

U.S. greenback foreign money index (DXY) 1-hour candle chart. Supply: TradingView