Equities rally and Cryptocurrencies rise signals a return to bullish sentiment. BTC/USD gains overnight at Wall Street Open, but punters still bet on a price drop.
Market Update
Bitcoin (BTC), which attempted to break $51,600 resistance through Dec. 7, was unsuccessful. Bitcoin/USD gained in line the equities rebound.
Bitcoin: “The trend remains up”
Cointelegraph Markets Pro and TradingView data showed that the largest cryptocurrency made repeated attacks on the $51,600 mark Dec. 7.
The latest charge is ongoing at the time of writing. Wall St. opened added bullish momentum to $52,000. Overnight, Bitcoin rose almost 6%
“Bitcoin rejecting at $51.6K. This is a significant level, just as $53.5K-55.5K was,” Michael van de Poppe, a Cointelegraph contributor, said earlier.
“The trend is still up since the crash. Through which $49.6K, it’s an area I’d like for us to retest $53.5-55.5K.
Despite widespread belief that crypto market gains are a “dead cat bounce”, nerves still lingered across the markets. There was a general feeling that there would be a return to the lower levels.
Despite this, the 5% price increase seemed to have a positive effect on sentiment, with the Crypto Fear & Greed Index climbing nine points to 25/100 — just in time to break out of “extreme Fear.”
“5% does wonders,” fellow trader and analyst TechDev added.
ETF volumes show institutions still hungry for BTC
As Cointelegraph 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 years
Along 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.”
Elsewhere, open interest in Bitcoin futures also ticked up Dec. 7, having taken a serious hit as BTC/USD crashed below $42,000.
