Bitcoin has shot up off a 24-Hour low of $48,060.68 and is now up 3.89%.

Bitcoin made two lows over the past week, both around $45,700. It now appears to be on an uptrend after touching that double-bottom, and in a sudden move over the past couple of hours, penetrated the psychological resistance of $50,000, and is positioned at $50,580.19 at writing. But will it sustain above the $50K level?

In economic data out today, new homes sales jumped more than 12% in November, amidst rising optimism that global economies likely won’t be derailed by the omicron variant of the virus. The data on new home sales showed that the housing sector remained in fine fettle though off the highs seen last year.

Meanwhile the PCE Index, the Fed’s preferred inflation gauge, jumped to a year-on-year 5.7% increase in November from 5% in the prior month, the highest seen since 1982. The reading showed the seriousness of the inflation issue and put in perspective the Fed’s recent shift to a hawkish stance.

The mainline equity indices also appeared to be in position to sign off the pre-holiday weekend on a positive note.

Bitcoin could be reacting to the economic data, but trading firm QCP Capital has an interesting view that forthcoming low liquidity over the holidays could spark a short squeeze in a market dozing in the $45,500 to $49,500 range. (Coin Telegraph)

“We maintain our view that there will be a squeeze (likely to the topside) as liquidity thins out into the holidays and into 2022. If this happens, owning wings would be very profitable,” said QCP.

The squeeze may have already begun.

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