Why Bitcoin Sentiment Has Turned Bullish as BTC Price Taps Two Week High
Late weekend trading has resulted in another minor rally for Bitcoin which has just reached resistance at a two week high. Sentiment among traders and analysts has flipped bullish again as hopes of a ‘Santa rally’ return to crypto land.
Bitcoin Adds Six Percent
The weekend has been a positive one for Bitcoin with another push upwards imitating during late trading in the US and early Monday morning in Asia.
For the past three days BTC prices have been a flat line at $7,150 but over the past few hours it has moved to the upside in a 6% push to top out over $7,600 according to Tradingview.com.
The momentum has taken the digital asset to a two week high and it has currently been halted by the same resistance if faced earlier this month.
Bitcoin is still firmly in its range bound channel that formed almost a month ago and until it breaks $8k this consolidation is likely to continue.
Crypto traders and analysts have started to turn bullish as support holds and resistance gets retested. Josh Rager noted that failure on the $7,400 short and expects prices to push higher as monthly resistance gets tapped.
“Price currently breaking through monthly open and 0.786 fib of this range. Price could fall here but I think it pushes higher,”
IMO shorting $7400s was a crowded trade
Everyone talking about it
I’m looking to short but higher
Price currently breaking through monthly open and 0.786 fib of this range
Price could fall here but I think it pushes higher pic.twitter.com/snTMJtMXCf
— Josh Rager 📈 (@Josh_Rager) December 23, 2019
The weekly close has been a green one and the hammer candle formation could signal a bullish reversal of the six month down trend.
Sentiment appears to be strengthening in the crypto crowd as more comments such as this are appearing this morning;
Imagine shorting this $BTC strength right now
— Satoshi Flipper (@SatoshiFlipper) December 23, 2019
The final few days of this year will be crucial for the next direction, essentially all Bitcoin needs to do is remain above $7k and hold support for the position to gain strength.
Elsewhere on Crypto Markets
Bitcoin dominance has tapped a three month high just over 71% which means pain for all of the altcoins.
Ethereum has managed to scramble 5% from the movements of its big brother but prices are still on the floor just below $135. ETH is still trapped in the depths of a two year bear market any may not start to see recovery until later next year.
Litecoin has made a similar gain but it too is weak at just over $40. Tron is one of today’s top performers as TRX adds 8% but altcoins are back in the frozen wastelands of crypto winter again so these small gains are still pretty insignificant.