It looks like Santa has arrived early for crypto investors this year, with strong rallies seen across bitcoin (BTC), ethereum (ETH), and the broader altcoin market over the past 24 years. time.
As of 1:10 p.m. UTC, BTC was trading at $ 51,038, up 4.3% in the last 24 hours and up 7.1% in the past week. Meanwhile, ETH stood at $ 4,090, up 2.9% in the last 24 hours and up 3% for the week.
Elsewhere in the crypto market, performance was also strong over the past day, with the vast majority of coins in the top 100 by market cap posting higher prices. Some of those that stood out included Sandbox (SAND), Fantom (FTM), Arweave (AR), and Internet Computer (ICP), all of which saw 24-hour gains of between 20% and 13%, respectively.
The rally in bitcoin over the past 24 hours marked a break from the key $ 50,000 level, bolstering sentiment among bitcoin HODLers and traders. Meanwhile, the price also recently crossed a descending trendline which can be traced back to the all-time high of $ 69,000 on November 10, improving the technical setup of the Bitcoin chart.
90-day BTC price:
For Ethereum, the recent rally pushed the second most valuable cryptocurrency above the $ 4,000 mark, after buyers pushed it from a low of just over 3,640. USD December 15th.
90-day ETH price:
And as the Bitcoin chart in particular looks more solid from a technical analysis standpoint, the chain signals also look promising for the number one cryptocurrency.
Among several bullish signals, some members of the bitcoin community pointed out today that the great whales continued to add more coins to their holdings in November and December.
Along with a build-up of coins by whales, the supply of BTC on exchanges has also seen a steady decline over the past two months, although a slight increase was seen between Thursday and Friday this week, data shows. of Change machine show.
BTC balances on exchanges:
Meanwhile, according to Zhu Su, CEO of the crypto hedge fund Capital of the three arrows, the bitcoin market currently appears poised for “gamma compression” – a phenomenon caused by rapidly rising prices, forcing market makers in the options market to buy bitcoins for cash as money rushes into the markets. purchase options.
Additionally, looking at funding rates in the BTC and ETH perpetual futures market, we find that the rates for the two largest cryptocurrencies generally remain in positive territory, although December rates have declined slightly. compared to November.
Positive funding rates mean traders who are long on perpetual futures pay short ones, while negative rates mean short positions pay long. As such, finance rates are generally positive when bullish sentiment dominates among traders.
BTC funding rate versus price:
ETH funding rate in relation to the price:
Commenting on the latest change in funding rates on Reddit’s r / CryptoCurrency forum, one user noted that signs of a recovery in rates could signal “the start of another bullish rally”.
The same user added that although the level is still not very high, “this indicates that investor sentiment may turn to positive.”
Meanwhile, the early Christmas rally and improving sentiment among crypto traders followed an appearance on CNBC by Digital galaxy CEO Mike Novogratz yesterday.
In the interview, the famous crypto supporter said he expects âless volatilityâ in the future. He added that he viewed bitcoin as “tailor-made as a store of value” and not as a transactional currency.
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