Bitcoin faces resistance at $51.5k as price retraces back below $50k

Bitcoin faces resistance at $51.5k as the price hasn’t been able to clear it. The price has now traced back below $50k, which is not a good sign. Well, Christmas was good, though, as the price of altcoins has also increased quite a lot in the last few days. So, it will be essential to see if the price moves back up to $50k again so that the price rally continues.

Bitcoin price action

After Bitcoin crossed $50k, it has moved to $51.5k twice but has not been able to clear it with good volume. The battle between bears and bulls is going hard, and it will be important for $49.7k to hold so that the price action stays strong. The price between $49.7k-$53k is very important for the bull run to resume again. Another good thing is that the funding rates have dropped, which shows that the leverages have reduced, and the market has reset for another bull run.

Bitcoin faces resistance at $51.5k
Bitcoin weekly chart, Image Source: TradingView

It is also being seen that top Bitcoin traders are also becoming more bullish and opening long positions. The current chart also shows that Bitcoin has retested the falling wedge and jumped, which is a bullish sign. Things look okay, and there has been a lot of long calls at $49.5k, which pushed the price past $50k.

It will be important to see that if the December month ends on a good note and we start the new year above $50k. For this to happen, the $51.5k level will be critical.

Ethereum looks bullish

While Bitcoin has been struggling to hold above $50k, Ethereum seems to be quite strong above $4,000. It has dipped below this level a few times but has managed to move back up pretty quickly. If the price of BTC moves to $55k, we can easily expect $4,5000 in Ethereum as the price action looks really good. In fact, the total altcoin market seems to be holding up pretty well and has seen a good pump recently. This means in the future; we can expect Bitcoin dominance to drop further.

What are your thoughts as Bitcoin faces resistance at $51.5k and moved below $50k again? And do you think we will soon see a breakout? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

Also Read: Dogecoin foundation is working on staking with Vitalik Buterin.