U.Today – Cryptocurrency enthusiasts have also embraced the idea of a Santa Rally; It is not just a concept found in traditional markets. Essentially, it describes the increase in asset prices in late December that is often driven by optimism, lower trading volumes, and positive holiday sentiment.
Although irregular, this phenomenon has been observed in December's historical performance. Alex Krueger, an economist, recently underscored this trend when he announced that the Santa Rally has finally arrived.
The recent recovery of Bitcoin price after falling to the 50 EMA seems to support his confirmation. As this support level, around $94,500, stabilized, Bitcoin was able to recover towards $98,000, reviving expectations for a higher end to the year. Currently, the Bitcoin chart is showing a potential change in momentum. Bitcoin rose near the psychological threshold of $100,000 after falling to a crucial support level. But things are not going completely smoothly yet.
The modest volume that has accompanied the upward move so far suggests that in the absence of stronger buying pressure, the rally may lose momentum. Reclaiming the $100,000 mark would be a major psychological victory for Bitcoin if it continues to rise, perhaps paving the way for future gains.
However, if the price does not rise above $100,000, there could be a consolidation or even a retest of the $94,500 support. If this level is broken, Bitcoin may move towards the next important support level, which is $85,000. There is a wave of optimism after Santa's rally, but traders should be careful.
Although a broader bullish phase may begin with the rally, a cautious outlook is advised due to lack of strong volume and persistent market uncertainties. Bitcoin's resilience at critical levels offers some hope for now, but whether or not this holiday cheer has lasting momentum will be determined over the coming days.
