The Santa Claus rally stops at $ 51,500, but Bitcoin successfully tests the descending wedge spike

Bitcoin rose to $ 51,500 yesterday (December 24) as traders weighed the possibility of a “Santa Claus rally” happening by Christmas.

BTC / USD 1 hour frame chart | Source: TradingView

BTC sees the possibility of a long-term retest

Data from TradingView shows that Bitcoin is holding its 6% gain yesterday and is approaching the recent resistance just above $ 51,500.

Right now, traders are divided over the strength of the rally and how long it can last.

Bitcoin remains in a familiar area despite its rapid growth and needs to show strength over long periods of time.

For “Filbfilb”, co-founder of the Decentrader trading platform, the combination of low financing rates and top dealers who turn long gives cause for further hope.

https://twitter.com/filbfilb/status/1474323334548668447?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
“The top traders are all long. Open Interest (OI) increased 2.86 billion (40%). The funding is low. Almost 10x liquidation “.

Meanwhile, analyst “Rekt Capital” noted that the current reversal means that Bitcoin has “successfully retested” the top of the descending wedge structure for most of 2021.

https://twitter.com/rektcapital/status/1474326710250356756?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
Data from the Deribit derivatives exchange research team shows that funds were increasingly optimistic about Bitcoin prices in the mid-$ 50,000 range in January.

“Additional funds will be included in the New Years game. Let’s focus on BTC again this time, as a large fund bought a call x1,200 range from 52,000 to 56,000 for $ 49.5,000 on Jan 14, just before the> 50,000 surge.

At press time, Bitcoin is currently trading under $ 51,000.

ETH goes back to $ 4,000

Although Bitcoin managed to post a stronger gain than Ether on the 23rd, it has also rebounded above $ 4,000.

ETH / USD 1 hour frame | Source: TradingView

The top 10 altcoins by market cap were solidly in the green, led by LUNA’s continued success.

The exception is Ripple’s XRP, which held its own rally earlier this week.

“And just like that, people want to buy Altcoins,” emphasized Michaël van de Poppe.

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