Bitcoin News Today – Headlines for December 24

  • Bitcoin’s price is driven by technical factors
  • The Fear and Greed Index of Bitcoin is still relatively low

Bitcoin News Today – The technical rebound of Bitcoin (BTC) has pushed its price back to the $7,300 level. While traders may wonder how far the bulls can push the price of the digital currency, there is room for some bearish actions in the short-term. Nevertheless, as the holiday season draws closer, seasonal factors might come into play.

Bitcoin (BTC) Made a Sharp U-Turn

Bitcoin recently made a sharp U-turn to the $7,500 levels overnight from a low of $6,400. The digital currency later corrected to the $7,200 area. While Bitcoin bulls might be cheering for the long due rebound, technical factors could be the main drivers of the price action. There was also a gap in CME Bitcoin futures earlier this week.

The gap was between $7,120 and $7,240. The firm tends to fill the gaps, and this is not the first time such an event is unfolding in the digital currency space.

Irrespective of the massive U-turn in the market, it still too early to call the price of Bitcoin, especially for the short-term. As of Dec. 19, the BTCUSD Index of OKEx had a high of $7,777 and a low of $6,433. This means that the range has reached $1,342, which his still below the $2772 average. The monthly range has been around 3,000 since the end of Crypto Winter. The present range of $1,342 shows that the BTCUSD Index of OKEx potentially still has room to incur further downward or upward movement before the end of the year. However, no one knows in which direction it would go.

Bitcoin’s Fear and Greed Index Remains Relatively Low

The Fear and Greed Index of Bitcoin (BTC) is still at a relatively low level after the rebound. The Fear and Greed Index dropped to 15 last week and it remained at 21 after the overnight U-turn. While 21 may not be the lower level, the Index continues to remain at the Fear level.

Another piece of the puzzle out there is the BTC Long/Short Ratio of OKEx. The ratio has plunged to 1.03 from 1.22 after the sharp recovery of the digital currency. This indicates that the potential profits of shorts are reduced. A lower ratio is usually considered a sign of short-term price rebound.

On the other hand, there are some institutional investors that may have started to close their books as we approach the holiday season. Data from Skew shows that there is a considerable decline in open interest in both Bakkt and CME BTC futures after the digital currency recovered to the $7,200 levels.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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