BTC/USD consolidated upon reaching $400 of $50,000, according to data from Cointelegraph Markets Pro and TradingView. Bulls shoot up against the big sell wall at the crucial level psychologically, with experts predicting that $50,500 would have to be hit and held in order for a short period to turn positive.
In a typical social media post, prominent trader Pentoshi tweeted, “Today the seas will split, allowing for a shot for a higher low on BTC.”
The awaited “Santa rally” has so far eluded traditional and crypto markets. Some were hoping for a comeback around the New Year.
The issue, according to trading company QCP Capital, was upcoming low liquidity over the holidays, igniting a short squeeze in an unduly relaxed market environment. According to Coinglass statistics, exchanges funding rates show positive results but are neutral at the time of writing, indicating a lack of speculative activity.
Dollar Abandons Recent Gains
Meanwhile, macro cues were subdued at the Wall Street open, as a 4.3 percent increase in Tesla (TSLA) shares had little influence on Bitcoin’s performance. Post-market opening ring, the S&P 500 was marginally higher, and the Coronavirus fear witnessed last week looked to have subsided.
A falling US dollar provided additional assistance, as the US dollar currency index (DXY) pushed over the 96 support.
Will Bitcoin witness a rise in New Year?
When looking at previous data on Bitcoin price activity from the last week of December till the first couple of trading days of January, evidence reveals that a Santa Claus surge in crypto is less likely than equities.
Just four years out of the previous ten have been profitable for Bitcoin, and recently it was last year. When it comes to speculative digital assets, everything is conceivable despite the fact that there are significantly fewer data compared S&P 500.
Other types of seasonal data in relation to the current date could be more beneficial. Today is also the Winter Solstice, which has coincided with a peak, bottom, or all-time high in the past.