$50K has become somewhat of a psychological support level
According to cryptoanalyst Lark Davis, Bitcoin (BTC) could be on the verge of further gains, after breaking its recent downtrend.
The largest cryptocurrency by market capitalization regained the $51K mark today after a slight dip to lows of $49,670 during an otherwise quiet Christmas weekend. As of press time, Bitcoin was trading today at $51,598. Today marks the fourth day of trading above the $50K mark since Dec. 23.
The essence of the $ 50,000 rack is rated by the chain analysis company Health:
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 retention rate reaches its highest level in 11 months
According to the chain analysis company Glassnode, Bitcoin’s ‘HODLed or Lost Coins’ amount peaked at 7.25 million BTC in 11 months.
Lost or HODLed Bitcoins suggest the movement of large and old stashes, indicating an increase in out-of-circulation tokens—those that may have been kept in cold wallets by long-term holders or lost due to human error with a slight possibility of recovery.
A slight increase in this indicator suggests that a one-year increase in the price of Bitcoin, along with expectations for further bullish movements, may have led traders to hold onto their BTC token rather than trading it for others. active.
Bitcoin (BTC) price action
In the absence of breaking news or impactful tweets, Bitcoin bulls and bears continue to battle toward $52,000, with an overall uneven risk appetite causing investors fear. However, the prospects of a BTC rally beyond here and into the new year remain favorable as the chances of a local drop diminish.
As investors watch with caution, the pull of the downside buy from its December low of $ 42,333 is stronger than anything else. BTC / USD is now higher after rebounding from intraday lows of $ 50,480 earlier today. The price of Bitcoin has risen more than 3.5% in the past 24 hours, indicating that the rally may continue.
