The pair remained stuck in a trading zone only around $4,000 wide, a key factor fuelling bets that a “short squeeze” would hit over the holiday period.
Against declining volatility, data reinforced conviction among investors, with the supply being bought up at roughly three times the rate of new BTC being mined.
“Strong handed HODLers are absorbing supply at more than triple the rate of new coins being mined each day,” on-chain analytics firm Glassnode summarized in the latest edition of its weekly newsletter, “The Week On-Chain.”
Glassnode additionally noted that at a spot price of $47,000, over one-quarter of the BTC supply was underwater compared to when it last moved.
As Cointelegraph reported, the likelihood of a squeeze up or down on BTC/USD will likely increase over the new year as decreased activity thins out liquidity and allows for volatility to enter more easily.
#BTC Update ✅#Bitcoin bounced 8% $46k re-entry after selling $52k & back up to $50k
Throwback and S&R flip likely from here. Only a breakout above $50k would be the significant breakout and LONG entry #midterm in case u missed this bounce (downtrend breakout) pic.twitter.com/eKICOZLza6