PakGazette – Cryptocurrency enthusiasts have also embraced the idea of a Santa Rally; It is not just a concept found in traditional markets. Basically, it describes a rise in asset prices in late December that is often driven by optimism, lower trading volumes, and positive holiday sentiment.
Although erratic, this phenomenon has been noted in the historical performance of December. Alex Kruger, an economist, recently emphasized this trend when he declared that the Santa Rally is finally here.
The recent recovery of Bitcoin price after a drop to the 50 EMA seems to support his claim. Due to the stability of this support level, which is around $94,500, Bitcoin has been able to recover towards $98,000, reviving expectations for a higher year-end. At the moment, the Bitcoin chart shows a possible momentum shift. Bitcoin has risen near the psychological threshold of $100,000 after falling to a crucial support level. But things are still not going well.
The modest volume that has accompanied the bullish move so far indicates that, absent stronger buying pressure, the rally may lose momentum. Reclaiming the $100,000 mark would be a huge psychological win for Bitcoin if it continues to rise, possibly paving the way for future gains.
However, if the price does not rise above $100,000, there may be consolidation or even a retest of the $94,500 support. If that level is broken, Bitcoin could move towards the next significant support level, which is $85,000. There is a wave of optimism following the Santa Rally, but traders should proceed with caution.
Although a broader bullish phase may begin with the rally, cautious expectations are advised due to the lack of strong volume and current market uncertainties. Bitcoin’s resistance at critical levels gives some hope for the moment, but whether or not this holiday cheer has lasting momentum will be determined in the coming days.
