Bitcoin (BTC) held firmly in its narrow range on December 23 as price action continued to contradict the strong buying activity.
Traders are busy accumulating
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD failed to hold $49,000 after hitting a 10-day high.
The pair remained stuck in a trading zone of just $4,000 wide, a major factor fueling bets that a “short squeeze” will occur during the holiday period.
Against the decline in volatility, the data bolstered conviction among investors, with the supply being bought at nearly three times the rate of new BTC being mined.
“Strong HODLers are absorbing supply at more than three times the rate of new coins being mined each day,” the on-chain analytics firm Glassnode summed up in the latest edition of its weekly newsletter, “The Week On-Chain.”
Glassnode also notes that at a spot price of $47,000, more than a quarter of the bitcoin supply is underwater compared to when it was last moved.
As Cointelegraph reported, the potential for upward or downward pressure on BTC/USD is likely to increase over the new year as lower activity dampens liquidity and allows volatility to enter more easily.
The bounce and the S&R will likely turn from here.
Only a break above $50K will be the big breakout and long entry # Average Duration In case you miss this bounce (breakout downtrend) pic.twitter.com/eKICOZLza6
– Anissa (@Anbessa100) December 22 2021
Among the traders, $50,000 remains the point to watch for a resumption of the uptrend.
Rally Santa Comes to XRP as Altcoins Boil
Among altcoins, Wednesday’s abundance was waning, with only two of the top 10 cryptocurrencies by market cap still in green on the daily time frames at the time of writing.
Related: Price Analysis 12/22: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGE
The lead was XRP, which maintained a weekly gain of more than 18% to return to $1 for the first time since the beginning of December. Ether (ETH) is back below $4,000.
For Cointelegraph contributor Michael van de Poppe, signs have been pouring in that the New Year’s rebound has made buying this week a solid strategy.
“More and more weekly charts are forming beautifully on altcoins,” said Tell Twitter followers.
“The year 2022 will be huge.”