Bitcoin (BTC) is currently recovering strongly from last Friday’s massive crash, from which analytics company Glassnode now reports that even $5.4 billion worth of futures contracts were liquidated over the weekend.
The rising bitcoin price is accompanied by a rising AEX rate and news from Statistics Netherlands about the highest inflation in the Netherlands in more than 40 years. We also see that market sentiment is rising slightly again according to the fear & greed index:
Bitcoin Fear and Greed Index is 25 – Fear
Current price: $50,604 pic.twitter.com/ynVaysJKZm— Bitcoin Fear and Greed Index (@BitcoinFear) December 7, 2021
The total market capitalization of all cryptocurrencies was below $2.3 trillion yesterday morning and is back at $2.5 trillion this morning. However, that does not mean that the danger has passed.
Bitcoin price recovers slightly
From bitcoin price was able to recover to $49,000 on Saturday after the crash, but there was initially too much resistance and the price was unable to break through this. Bitcoin continued to push against this limit on Sunday and Monday.
Last night bitcoin slowly started to push through this barrier and by midnight bitcoin broke through $49,000 and then immediately $50,000. Bitcoin immediately touched $51,000 and continued to climb steadily overnight. The BTC price this morning at $ 51,500 and may well continue to rise.
This means that bitcoin is already 8% in the plus compared to 24 hours ago, but still 11% in the minus compared to a week ago and even 25% in the minus compared to the all-time high (ATH) from $69,000 a month ago.
Should bitcoin continue to climb, it may face significant resistance at the levels that provided support last week, around $53,000 and $54,500, the 100-day mark. simple moving average (SMA). Meanwhile, the 200 days exponential moving average (EMA), just above $50,000, otherwise the 200-day SMA, around $46,500, may provide support. It seems likely that bitcoin may enter a consolidation phase in this range before seeing another breakout, but that is far from certain.
Striking bitcoin developments
It is striking that in the meantime, half a year after the bitcoin mining ban was implemented in China, the hash rate, or computing power, of the Bitcoin network at 170-180 exahashes per second (EH/s). The hash rate is therefore gradually approaching the ATH from May. We also see that miners are still holding their BTC firmly during this dip, a very bullish sign.
Unlike history (2013/2017) the Miners in the current cycle are Accumulating.
After Halving in 2012/2016 the Miners begin a distributing trend in which can be seen through their Reserves being drained (average of -14%).#Bitcoin pic.twitter.com/yULzamfn6Z
— G a a h (@gaah_im) December 7, 2021
Perhaps even more striking is that there may have been some market manipulation again. According to analytics firm Santiment, bitcoin whales, investors holding 100 to 10,000 BTC, accumulated a whopping 67,000 BTC after the crash. Apparently that was exactly the same amount that they dumped on the market just before the dip.
???? #Bitcoin has recovered back to $50.1k Monday, and whale traders played the dip to perfection. Beginning during the dump to $43.5k, addresses holding 100 to 10k $ BTC have accumulated 67k more $ BTC after dumping the same amount before the price drop. https://t.co/TcTSKBy2v7 pic.twitter.com/JxZL7nGVwR
– Santiment (@santimentfeed) December 6, 2021
Additionally, Grayscale Investments, the massive crypto asset manager, has positive news about bitcoin adoption. The company reports that a quarter of Americans who invest more than $10,000 now own bitcoin.
Does it feel like 2021 was a pivotal year for #crypto acceptance and adoption? Find out just how much has changed in our annual survey of investor attitudes toward #Bitcoin: https://t.co/lIHAUjQuHy pic.twitter.com/GwmZcj7LCS
— Grayscale (@Grayscale) December 6, 2021
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