Bitcoin Nearing $100,000: The Santa Claus Rally Takes Shape
A famous economist recently announced the arrival of the “Christmas rally” for bitcoin, predicting a spectacular price increase as the year comes to a close. This trend, supported by strong technical resistance, could propel BTC to new historical heights, despite some challenges.
Has the Christmas rally finally arrived?
The “Christmas rally” is an increase in the prices of assets at the end of December, which is often fueled by optimism, lower trading volumes, and positive sentiment during the holidays. Although this phenomenon can be erratic, it has been observed in the historical performance of bitcoin in December. Economist Alex Kruger recently highlighted this trend by stating that the Christmas rally has finally arrived.
The recent recovery of the bitcoin price after a drop to the 50-day exponential moving average (EMA) seems to support this claim. Thanks to the stability of this support level, situated around $94,500, BTC has been able to rally towards $98,000, rekindling expectations of a higher end of the year. BTC even approached the psychological threshold of $100,000 after diving to a crucial support level. Currently, the bitcoin chart shows a possible change in momentum.
Upcoming challenges for bitcoin
Unfortunately, things are still not going smoothly. The modest volume that has accompanied the rise so far indicates that in the absence of stronger buying pressure, this rally could lose momentum. Reaching the $100,000 mark would be a significant psychological victory for bitcoin, possibly paving the way for future gains. However, if the BTC price does not surpass $100,000, there could be consolidation or even a retest of support at $94,500 and then at $85,000.
In summary, the resilience of bitcoin at critical levels offers a glimmer of hope for now. However, the question of whether the Christmas rally will still occur or if it will continue will be determined in the coming days. Traders should therefore remain cautious in the face of ongoing uncertainties.
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.