The leading cryptocurrency rallied above the psychologically important $50k level, up 4.63%, to $51,375 on Thursday, December 23. After a protracted slump, buyers perked up and the market saw green on the screen.
Risk appetite was sparked by research on the new strain of Covid-19. According to the latest data, Omicron is less likely to result in hospitalization than from Delta. Also, weakening of the dollar and the rise in stock indices got a boost after the FDA granted emergency authorization to Merck’s molnupiravir, a Covid-19 antiviral pill. Earlier in the day, the regulator issued a similar authorization for Pfizer’s drug.
The US Securities and Exchange Commission (SEC) has rejected the Valkyrie and Kryptoin spot ETF applications. The SEC has been extremely hesitant about endorsing any cryptocurrency-related investment vehicles, citing investor protection and market manipulation as the two main reasons.
Bitcoin gained $2,250 on Thursday. In Asian trading, price action rose to $51,499. In European trading, the DXY sank to a weekly low. Most US and European markets are closed on Friday in observance of Christmas holidays, so traders will have no guidance to look for today. The main markets have shown which way the price action will be moving on the weekend, so now the ball is in the buyers’ court.
On the daily TF, buyers have broken out of the trendline from the top of $68,990. This is a major event, but it would be even better if $51,950 were breached (~$61.2% of the decline from $51,176 to $42k and ~38.2% of the pullback from $68,990 to $41,623). The market remains volatile as price action is in the upper end of the $45,500-51954 range, which has been shaping up since December 4, when the price collapsed to $41,623.
Building an ascending channel based on three values ($41,623-$45,600-$51,954, we get the target of $57,044 at the upper bound of the channel. But first, buyers will need to breach the December 7 high at $51,954, and the 61.8% Fibonacci retracement level at $51,950.