Autor Cointelegraph By William Suberg

Bitcoin (BTC) recovered from a dip below $50,000 on Dec. 8 as Wall St. trading opened on a fresh bullish note.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBitcoin market ditches “extreme fear”Data from Cointelegraph Markets Pro and TradingView captured a classic rally for BTC/USD on hourly timeframes, gaining $2,000 in a single one-hour candle.The pair had hit daily lows of $48,656 on Bitstamp before a dramatic trend change brought back the psychologically significant $50,000 level.Buckle up— Zhu Su (@zhusu) December 8, 2021#Bitcoin held crucial level and continues probably to a new test at $51.6K and $53.6K. Nice!— Michaël van de Poppe (@CryptoMichNL) December 8, 2021

As positive signals began to emerge from well-known names on social media, sentiment likewise felt the benefit, exiting “extreme fear” for the first time since Friday’s crash below $42,000.Popular trader Rekt Capital, who earlier eyed healthy behavior on the weekly chart, meanwhile added that BTC price action could be mimicking its recovery seen during September’s major dip. This involved acting between two exponential moving average (EMA) lines.”Bitcoin may be repeating a consolidation period it also experienced following its May 2021 crash,” he tweeted. “This consolidation takes place between the blue 50-week EMA support and green 21-week EMA resistance.” BTC/USD 1-week annotated candle chart (Bitstamp). Source: Rekt Capital/ TwitterExchange Bitcoin holdings drain faster since sell-offOn-chain metrics continued to please on Wednesday, against a backdrop of network fundamentals shaking off spot price action by nearing new record highs.Related: Third-biggest Bitcoin whale’s holdings total $6B after ‘whopping’ 2.7K BTC buy-inAlmost 80% of the BTC supply was still in profit at lower levels, according to data from on-chain analytics firm Glassnode, this nonetheless constituting a one-month low.BTC 1-hour supply % in profit (7-day moving average) chart. Source: Glassnode/ TwitterA look at the BTC balance on exchanges added to the positivity, reserves at their lowest in multiple years and far below when Bitcoin traded at four figures.Last week’s dip failed to upend the trend, which in fact accelerated over the weekend, data from on-chain analytics platform CryptoQuant confirms.BTC exchange reserves chart. Source: CryptoQuant

Bitcoin (BTC) retained $50,000 as support overnight into Dec. 8 amid confidence that the 2021 bull market was not yet over. BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewSilver lining for BTC weeklyData from Cointelegraph Markets Pro and TradingView showed BTC/USD testing but failing to crack through $50,000 after reaching local highs of $51,990 on Bitstamp Tuesday.The pair had accelerated at the start of trading on Wall Street, adding to existing gains from Sunday to give BTC  some short-term relief.Now, however, it was time to consult longer timeframes to get a clearer picture of Bitcoin market health, according to trader and analyst Rekt Capital.In his latest YouTube video, Rekt Capital eyed the weekly chart to reveal what appeared to be a previously long-term resistance level flipping to support.”This might very well be a successful retest attempt,” he said, highlighting the top diagonal of a downward wedging structure in place for much of 2021.Significant buyer interest in an area around $43,000 added to the bullish prospects.BTC/USD 1-week annotated candle chart (Coinbase). Source: Rekt Capital/ YouTubeContinuing, Fibonacci levels should figure in Bitcoin’s next move, the video argued, with Bitcoin now caught between two key lines representing current support and the $60,000 region.Few believers in end-of-year moonshotElsewhere, the prognosis was tame, with calls for a lackluster end to 2021 now taking prevalence. Related: Bitcoin could ‘drive people nuts’ for months with $53K BTC price ceiling — analyst”Earlier today everyone thought we were going to moon, if we sweep the lows everyone will probably think we’re going to dump again,” fellow analyst William Clemente tweeted, reinforcing a previous statement. “Still just think we’re going to consolidate and carve out a regime of mixed-negative funding before eventually going higher.”Multiple correlations meanwhile hinge on the last few weeks of the year, among them Bitcoin versus 1970s gold and, of course, its own 2017 performance.

Bitcoin (BTC) attempted to crack $51,600 resistance throughout Dec. 7 as BTC/USD gained in line with an equities rebound.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBitcoin: “The trend is still up”Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency making repeated assaults on the $51,600 mark on Dec. 7.At the time of writing, the latest charge was ongoing, as the Wall St. open added further bullish momentum towards $52,000. Bitcoin was up almost 6% overnight.”Bitcoin rejecting at $51.6K. That’s an important level, just like $53.5K–55.5K is,” Cointelegraph contributor Michaël van de Poppe commented earlier.”The trend still up since the recent crash, through which $49.6K is an area that I’d like to see hold if we want to retest the $53.5–55.5K zone.”Nerves were still palpable across crypto markets amid the broad belief that the current gains could be a so-called “dead cat bounce” and a return to lower levels awaits.Nonetheless, the 5% price uptick appeared to do wonders for sentiment in terms of numbers, the Crypto Fear & Greed Index jumping a whole nine points to 25/100 — on the edge of breaking out of “extreme fear.”Crypto Fear & Greed Index. Source: Alternative.me”5% does wonders,” fellow trader and analyst TechDev added.ETF volumes show institutions still hungry for BTCAs Contelegraph reported, appetite for buying Bitcoin has nonetheless remained throughout recent days.Related: This Bitcoin price metric just hit ‘oversold’ for only the 7th time in 8 yearsAlong with a conspicuous whale account, institutional interest is also strong, as evidenced by exchange-traded fund (ETF) volumes.”Yesterday, Purpose Bitcoin ETF had its biggest inflow since the inception,” Lex Moskovski, chief information officer of Moskovski Capital, summarized looking at the data.”The demand is here.”Purpose Bitcoin ETF flows annotated chart. Source: Lex Moskovski/ TwitterElsewhere, open interest in Bitcoin futures also ticked up Dec. 7, having taken a serious hit as BTC/USD crashed below $42,000.Bitcoin open interest chart. Source: Coinglass