Bitcoin price may not be able to build on the relief rally as it heads into the end of the year. It continues to hover near $50,000 as it tries to find direction. The rally up to $52,000 was short lived, as levered longs have been liquidated in recent hours — albeit small numbers when zooming out. At the time of writing, BTC is changing hands at $50,645.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price had fallen back, slightly down over the past 24 hours
The leading cryptocurrency spent most of Tuesday trading above $51,000 as the stock market rose sharply amid growing optimism that the new omicron coronavirus variant would be less damaging to the economy than previously thought. But, the price had fallen back by the time of publications, was slightly down over the past 24 hours. Its trading volume across major centralized exchanges was lower.
“It may seem like ages ago already, but this weekend saw a Bitcoin -18.4% price retrace, along with several oversold signals. Our weekly report discusses the NRPL metric being a great leading indicator to track currently, along with many other topics”, Santiment stated.
Source: Santiment
You can see that it is attempting to reverse its weekend sell-off, although the cryptocurrency’s price could face short-term resistance around $53,000-$55,000. The Relative Strength Index (RSI) on the four-hour is rising from extreme oversold levels, suggesting that buyers could remain active over the short-term. Still, it remains in a month-long downtrend, defined by the downward sloping 100-period moving average on the four-hour chart. Downtrends tend to limit price rises as sellers outnumber buyers.
Price momentum is still negative on the weekly chart, which means more time is needed for Bitcoin to decisively break above its short-term downtrend.
Meanwhile, the crypto fear and greed index is currently sitting at 23, according to data from Alternative.me. A lower number indicates fear and a higher number indicates greed on a 100 point scale.
![bitcoin-price-continues-to-hover-at-50000-try-to-reverse-its-weekend-sell-off[1]](https://d3f5j9upkzs19s.cloudfront.net/azcoinnews/wp-content/uploads/2021/12/bitcoin-price-continues-to-hover-at-50000-try-to-reverse-its-weekend-sell-off1.png)
Crypto Fear & Greed Index as of December 8 | Source: Alternative.me
The indicator’s dip into negative territory implies a bullish-to-bearish trend change. The previous bearish crossover confirmed in late April was followed by consecutive weekly losses of more than 10% that saw the price of bitcoin drop to $30,000 from $58,000.
While it has bounced almost 20% from Saturday’s low of under $43,000, the cryptocurrency has yet to retake the bullish trendline from July lows breached last week.
Ether, meanwhile, was down about 1% over the same period. As AZCoin News reported, roughly 100,000 ETH were purchased on FTX, Binance, and Coinbase and sent to wallets marked as Three Arrow Capital (3ac) by Nansen.
The wallet address of 3ac can be found here on Etherscan. The move comes as a surprise to many digital asset investors. But it seems that this news did not affect the ETH price too much.
The overall cryptocurrency market cap now stands at $2.360 trillion, and Bitcoin’s Dominance rate is 40.5%.
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