Bitcoin (BTC) remained rigidly in its tight range on December 23, as price action continued to contradict strong buying activity.
Busy hodlers piling up
Data of Cointelegraph Markets Pro Y TradingView showed that BTC / USD was unable to hold $ 49,000 after hitting ten-day highs.
The pair remained stuck in a trading zone just $ 4,000 wide, a key factor driving bets that a "short squeeze" would hit during the holiday period.
In the face of declining volatility, the data reinforced conviction among investors, with the offering bought at roughly three times the rate of extraction of new BTC.
"Heavy-handed HODLers are sucking up supply at more than triple the rate of new coins being mined every day," summarized on-chain analytics firm Glassnode in the latest edition of its weekly newsletter, Chain week.
Glassnode also pointed out that at a spot price of $ 47,000, more than a quarter of the BTC supply was under water compared to the last time it was moved.
As Cointelegraph reported, the probability of an up or down contraction in BTC / USD is likely to increase during the new year, as the decrease in activity reduces liquidity and allows volatility to enter more easily.
#BTC Update โ #Bitcoin bounced 8%
$ 46k re-entry after selling $ 52k and backing up $ 50kS&R reversal and reversal probably from here.
Only a break above $ 50k would be the significant breakout and the LONG entry #Medium term in case this bounce has been missed (break of the downtrend) pic.twitter.com/eKICOZLza6- ANโฟESSA (@ Anbessa100) December 22, 2021
Among traders, $ 50,000 was still the point to watch for resuming a more bullish stance.
'Santa rally' hits XRP as altcoins simmer
Among altcoins, Wednesday's exuberance was waning, with only two of the top ten cryptocurrencies by market capitalization still green in daily time frames as of this writing.
Related: Price Analysis 12/22: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGE
The highlight was XRP, which maintained weekly gains above 18% to return to 1 dollar for the first time since the beginning of December. Ether (ETH) was under $ 4,000.
However, for Cointelegraph contributor Michaรซl van de Poppe, there were signs emerging that a New Year's rally made buying this week a solid strategy.
"More and more weekly charts are shaping up wonderfully on altcoins," He said Twitter followers.
"2022 will be huge."
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