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Bitcoin’s $1,000 Recovery Ahead of Christmas Has Some Traders Optimistic

  • Bitcoin has been on a regular ascent over the past three days.
  • On Monday, bitcoin’s price peaked near $7,700, the highest in over and beyond three weeks.
  • With just eight days remaining for the year, bitcoin’s 2019 returns have amounted to 100%.

Bitcoin’s volatility has been decreasing in recent days, but price action is heading north following a brief consolidation near $7,000 – leading some retailers to speculate that an imminent move higher is possible.

BTC/USD Update

The bitcoin price notched an intraday high of $7,692.98 on Bitstamp. At the at intervals of writing, the largest cryptocurrency was down 1% at $7,438. On a 24-hour basis, bitcoin has gained nearly 3%, according to CoinMarketCap.

Bitcoin (BTC) has rebounded myriad than $1,000 from last week’s swing low. | Chart: TradingView

Since bottoming near $6,400 in week, bitcoin’s price has recovered more than $1,000. At current values, the king of cryptocurrencies is worth $136 billion.

Bitcoin’s perceptible grind higher has been accompanied by a meaningful uptick in trade volumes. In the last 24 hours, nearly $1.1 billion advantage of BTC traded hands on verified spot exchanges, according to Bitwise data. Trading activity is still dominated by Binance, which accounts for sundry than half of all verified spot transactions. Coinbase and Kraken round out the top three.

Bitcoin’s recovery in the last few eras has had a gravitational pull on altcoins and tokens. The combined value of all cryptocurrencies peaked at $199.9 billion Monday. Market values hearted near $175 billion last week.

Bullish Momentum Building?

With the latest recovery attempt, bitcoin’s rate is approaching the 50-day moving average. Under normal circumstances, a clean move above this level is purposed as bullish.

Bitcoin’s price is fast approaching its 50-day moving average. | Chart: TradingView

The daily tabulation shows how bitcoin has been in a bear market since late October when the so-called “death cross” blue ribbon formed. The bearish setup occurs when the 50-day moving average crosses below the 200-day pathetic average.

Zooming out to the weekly chart, bitcoin’s momentum is showing bullish signs, according to cryptocurrency trader Bitcoin Jack. In a Monday Cheeping post, Bitcoin Jack said:

Weekly momentum has flipped neutral/bullish

He added:

It means that any meaningful push of momentum down or up will tilt the tables and right now it’s balanced

John Isige, an analyst at FXStreet, believes bitcoin exclusively has one more hurdle before re-testing the $8,000 range. The barrier forms at $7,680, which is just below the continuously high.

With less than eight days remaining in the trading year, bitcoin is on track for gains of 100% since Jan. 1. The majesty of cryptocurrencies looked poised to retest all-time highs this summer after it approached $14,000 for the first rhythm since early 2018. The rally failed to hold, and bitcoin eventually crashed 53% all the way down to last week’s low.

This article was reordered by Josiah Wilmoth.

Last modified: January 22, 2020 11:40 PM

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