Bitcoin Records Surprising 7.5% Comeback Following Spike in Lira
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Bitcoin (BTC) recorded a 7.5% rebound from yesterday’s low, following a dramatic turn of events of the Turkish lira (TRY) improved investor sentiment.
The benchmark cryptocurrency peaked at the $49K top this morning as the lira jumped by about 40% against the dollar (USD/TRY) overnight. The sharp move came as Turkey President Recep Tayyip Erdoğan announced measures to prevent the dollarization of the Turkish economy, protect consumers, and attract more investors.
The lira hit an all-time high against the dollar yesterday at 18.25 before retreating sharply to the $12.00 region.
Ironically, Erdoğan has expressed his anti-crypto stance in the past, and declared in September that the Asian/European nation was “at war” with the cryptocurrency industry. Nonetheless, the boom in the lira dragged Bitcoin and most altcoins along on Tuesday.
Meanwhile, a look at the Bitcoin Fear and Greed Index shows that market conditions are easing out of overheated conditions, following a mild uptick into a “fear” mode of 27/100 from “extreme fear.”
Also, Cointelegraph reported that data tracking HODLer behavior is near a “watershed moment repeating itself when it comes to Bitcoin profitability.”
According to data from analytics platform Whalemap, the number of BTC in losses should soon surpass those with unrealized gains. The report noted that a move to the upside usually transpires whenever such crossover occurs.
Key Bitcoin Levels to Watch — December 21
BTC has broken above the critical $48K barrier following the Erdoğan-induced rally recorded in the financial markets today. The benchmark cryptocurrency currently trades near its intraday high of $49K as bulls regain confidence.
That said, the recent leg up could kickstart a bullish recovery for the primary cryptocurrency, with the $51.5K top serving as the pivot level for bulls to flip the lasting bias.
As long as BTC keeps its head above the descending trendline, I expect the cryptocurrency to hit the earlier mentioned pivot target by the end of the week. A slip back under the trendline should reinstate the lasting bearish bias and bring the $43K support into focus again.
Meanwhile, my resistance levels are at $49,500, $50,000, and $50,500, and my key support levels are at $48,000, $47,000, and $46,000.
Total Market Capitalization: $2.26 trillion
Bitcoin Market Capitalization: $921.1 trillion
Bitcoin Dominance: 40.8%
Market Rank: #1
