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BTC nears $50k on hopes that price correction could be over

written by Bella Palmer

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hit highs of $49,600 on Bitstamp

Bitcoin (BTC) neared $50,000 on Dec. 22 as hopes began to appear that the price correction could be over.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hit highs of $49,600 on Bitstamp — its highest since Dec. 13.

A cross-crypto boost from turmoil in the Turkish lira Monday lingered as Bitcoin and altcoins stayed higher, with attention now focusing on the new year and price levels above $50,000.

With $50,000 constituting psychological resistance, others turned to on-chain metrics for further proof of underlying strength on Bitcoin.

On a more positive note, bitcoin’s illiquid supply has been increasing since a drop in May, reaching above 14 million, according to data from blockchain data firm Glassnode. The so-called illiquid supply shows the total supply of the oldest cryptocurrency held by illiquid entities.

Among them was fund manager Dan Tapiero, who noted bullish signals on the moving average convergence divergence (MACD) indicator in what has historically been a time to buy.

Rallies start when least expected/when tired bulls give up, he summarized.

MACD involves the relationship between two exponential moving averages on BTC/USD, and a rebound from a downtrend has preceded price run-ups.

The last time the buy signal appeared was at the end of September, right before Bitcoin rose to top new all-time highs just over one month later.

In more encouraging signs for investors, altcoins began posting more significant daily gains through Wednesday.

Ether (ETH), the largest altcoin by market capitalization, maintained $4,000, while standout Terra (LUNA) was up 16%.

Ripple’s XRP token traded up 9%, with none of the top 10 cryptocurrencies by market cap in the red.


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