A famous economist recently announced the arrival of the “Santa rally” for bitcoin, predicting a spectacular price rise at the end of the year. This trend, supported by strong technical support, could propel BTC to new all-time highs, despite some challenges.
The Santa Claus Rally has finally arrived?
The “Santa Rally” is an increase in asset prices in late December, which is often fueled by optimism, lower trading volumes, and positive holiday sentiment. Although this phenomenon is erratic, it was observed in bitcoin's historical performance in December. Economist Alex Kruger recently highlighted this trend when he declared that the Santa Claus rally has finally arrived.
The recent recovery in bitcoin price after a decline to the 50-day exponential moving average (EMA) appears to support his assertion. 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 moved closer to the psychological threshold of $100,000 after plunging to a crucial support level. Currently, the bitcoin chart shows a possible change in momentum.
Future challenges for bitcoin
Unfortunately, things are not yet going smoothly. Because, the modest volume that has accompanied the rise thus far indicates that in the absence of more robust buying pressure, this rally could lose momentum. Reaching the $100,000 mark would be a big psychological victory for bitcoin, perhaps paving the way for future gains. But, if the BTC price does not exceed $100,000, there could be consolidation or even a retest of support at $94,500 and then at $85,000.
In short, the resilience of bitcoin at critical levels provides some hope for the moment. However, whether the Santa Rally will still take place or whether 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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