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A famous economist recently announced the arrival of a “Santa rally” for Bitcoin, predicting a spectacular year-end price rally. This trend, backed by strong technical support, could propel BTC to new all-time highs despite some challenges.
Has the Santa Claus Rally finally arrived?
The “Santa Rally” is a late-December rally in asset prices that is often fueled by optimism, lower trading volumes and positive holiday sentiment. Although this phenomenon is erratic, it was observed in the historical performance of Bitcoin in December. Economist Alex Kruger recently highlighted this trend when he declared that the Santa Claus rally had finally arrived.
Bitcoin’s recent recovery after falling to the 50-day exponential moving average (EMA) seems to support his claim. Thanks to the stability of this support level, located around $94,500, BTC was able to recover towards $98,000, reviving expectations of a higher end of the year. BTC even approached the psychological $100,000 mark after breaking through a crucial support level. Currently, the Bitcoin chart shows a possible change in momentum.
Future Challenges for Bitcoin
Unfortunately, it’s not going smoothly yet. Because the modest volume that has accompanied the rise thus far suggests that in the absence of stronger buying pressure, this rally could lose momentum. Reaching the $100,000 mark would be a major psychological victory for Bitcoin, possibly setting the stage for future gains. However, if the price of BTC does not exceed $100,000, there may be a consolidation or even a retest of support at $94,500 and then $85,000.
In short, Bitcoin’s resilience at critical levels provides some hope at the moment. However, whether the Santa Rally will take place or continue will be decided in the coming days. Traders should therefore remain cautious given the lingering uncertainty.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.