Bitcoin Zooms After Prolonged Bearishness But What Does The Market Signal?

The Christmas season has come as a blessing for crypto investors as Bitcoin broke above the $50,000 price level after falling below the $49,000 and refusing to budge above that level for weeks.

The prolonged bearishness, which came after BTC touched an all-time high on Nov. 9, had led to some dire forecasts from popular analysts. Among them was Fairlead Strategies founder Katie Stockton, who said Bitcoin would fall to $44,000 and that $37,000 was the next major support.

Bitcoin's turnaround has the entire Twitter crypto world buzzing with excitement, with some claiming a "Santa run" is in motion.

"Banks are going to be closed for #Christmas, but #Bitcoin won't be! It is open 365 days a year, 24 hours a day. It just keeps on Bitcoining!" said popular Twitter analyst and crypto enthusiast Lark Davis.

Data from CoinMarketCap shows that as of 2:16 a.m. ET, BTC was at $51,076, up 5.5% in 24 hours. The market cap of the cryptocurrency is ready to hit the $1 trillion mark, currently being at $964 billion.

Still the market is in a state of fear, as shown by an Alternative.Me score of 41. And data from Glassnode suggests that the amount of Bitcoin HODL-ed or lost has reached a new 11-month high at 7,243,308.156 BTC.

The daily candle of BTC for Thursday opened at $48,588 and reached a daily high of $51,375, before closing the day at $50,838. The daily candle for Friday opened at $50,038 and reached a high of $51,527, but that could be broken as the day progresses. BTC is 25.85% below the all-time high of $69,000 touched in November.

The market is gradually emerging from a state of extreme fear as trading volumes for all cryptocurrencies have increased. It seems that Bitcoin is ready to take over the important $53,000 level and the downtrend is over, despite the news of the SEC rejecting Kryptocoin spot BTC ETF proposal.