Since December 23, this is the fourth day in a row that bitcoin has traded above $50,000, as $50K has become somewhat of a psychological support level.
BTC may be primed for new increases
BTC may be primed for new increases, according to cryptoanalyst Lark Davis, after breaking out of its recent downturn.
After a brief slide to lows of $49,670 during the Christmas weekend, the largest cryptocurrency by market capitalization reclaimed the $51,000 level today. BTC was valued at $51,598 as of press time. Since December 23, this is the fourth day in a row that the stock has traded above $50,000.
Santiment, an on-chain analytics startup, summarizes the $50K support as follows:
With Bitcoin back over $51k, the sentiment from traders has shifted back into positive range. As expected, $50k has become somewhat of a psychological support level, where traders become optimistic when above this threshold, & skeptical when below.
Investor hodling rate reaches 11-month high
The amount of “HODLed or Lost Coins” in Bitcoin has reached an 11-month high of 7.25 million BTC, according to on-chain analytics firm Glassnode.
Lost or HODLed Bitcoins indicate the movement of huge and old stashes, implying a surge in out-of-circulation tokens—those that may have been held in cold wallets by long-term holders or lost due to human mistake with a slim chance of recovery.
An increase in this indication indicates that a year-long rise in the Bitcoin price, as well as hopes for more gains, may have prompted traders to keep their BTC tokens rather than trading them for other assets.
The price of Bitcoin (BTC) is fluctuating
Bitcoin bulls and bears continue to battle for $52,000 in the absence of breaking news or dramatic tweets, with investors fearful of an overall uneven risk appetite.
However, as the chances of a local decline reduce, the prospects of a BTC surge beyond now and into the new year remain good.
The pull of buy-the-dip from its December low of $42,333 is bigger than anything else as investors wait with caution.
After recovering off intraday lows of $50,480 earlier in the day, the BTC/USD pair is presently higher. In the last 24 hours, the price of Bitcoin has grown by more than 3.5 percent, signaling that the surge may continue.