A renowned economist recently announced the arrival of the 'Christmas rally' for Bitcoin, predicting a significant price surge by the year's end. This trend, backed by strong technical resistance, could propel BTC to new historical heights, despite some challenges.
What is the Christmas Rally?
The Christmas rally is an increase in asset prices at the end of December, often driven by optimism, lower trading volumes, and positive sentiment during the holidays. Although this phenomenon can be erratic, it has been observed in Bitcoin's historical performance in December. Economist Alex Kruger recently highlighted this trend by stating that the Christmas rally has finally arrived.
Current Market Situation for Bitcoin
The recent recovery of Bitcoin's 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.
Challenges and Issues 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.
