Bitcoin holds off on Santa rally as fund forecasts a new year ‘short squeeze’

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Bitcoin (BTC) stayed rangebound after hitting ten-day highs on Dec. 22 amid recent warnings over market “complacency.”

Bitcoin holds off on Santa rally as fund forecasts a new year 'short squeeze'
BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

How a couple of new 12 months squeeze?

Knowledge from Cointelegraph Markets Pro and TradingView adopted BTC/USD because it consolidated after coming within $400 of $50,000 in a single day.

Bulls had been up in opposition to a big promote wall across the psychologically vital degree, with analysts calling for $50,500 to hit and maintain as a way to flip optimistic on quick timeframes.

“At present the seas might be parted, making means for a shot at the next low on BTC,” fashionable dealer Pentoshi tweeted in a attribute social media put up. 

“I urge of bears, please. Come on the Ark. Come to security. Journey with us to the drylands of 53K the place all can win and embrace in glory.”

Whereas the “Santa rally” has to date evaded each crypto and conventional markets, trying forward, some had been betting on a turnaround over the New Yr interval.

For buying and selling agency QCP Capital, the important thing lay in forthcoming low liquidity over the vacations, which may spark a brief squeeze in an excessively nonchalant market setup.

“We reckon the market is getting complacent as spot ranges compress on this 45,500–49,500 channel. And now could be a good time to purchase some wings (far strikes),” it advised on Dec. 22.

“…We keep our view that there might be a squeeze (prone to the topside) as liquidity thins out into the vacations and into 2022. If this occurs, proudly owning wings could be very worthwhile.”

Funding charges on exchanges had been optimistic but impartial throughout exchanges on the time of writing, information from Coinglass showed, hinting at a scarcity of speculative exercise.

Bitcoin holds off on Santa rally as fund forecasts a new year 'short squeeze'
BTC funding charges chart. Supply: Coinglass

Greenback abandons recent beneficial properties

Macro cues remained muted on the Wall Avenue open, in the meantime, as a 4.3% bounce in Tesla (TSLA) inventory did not influence Bitcoin efficiency.

Associated: Missed out on hot crypto stocks in 2021? It paid just to buy Bitcoin and Ethereum, data shows

The S&P 500 was barely up after the opening bell, whereas the Coronavirus panic, which had characterized the earlier week, appeared to subside.

Additional aid got here within the type of a declining U.S. greenback, with the U.S. greenback forex index (DXY) heading in the direction of 96 assist all through the day.

Bitcoin holds off on Santa rally as fund forecasts a new year 'short squeeze'
U.S. greenback forex index (DXY) 1-hour candle chart. Supply: TradingView