Bitcoin Price Hits December Lows, No Santa Claus Rally This Year?

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As a seasoned crypto investor with over a decade of experience in this rollercoaster ride, I must admit that the recent correction in Bitcoin has left me feeling like a Christmas Grinch. The festive period has historically been a time of joy and prosperity for the crypto market, but this year seems to be different.

After reaching an all-time high of $108,000 last week, Bitcoin’s price has now decreased by over 15% and reached a new low for December today. Currently, it is trading at 1.21% lower than its previous value, standing at $94,225, with a market capitalization of $1.86 trillion. This latest drop comes amid renewed selling activity, which has cast doubt on the possibility of a traditional “Santa Claus rally” this Christmas, a period that historically brings strong returns.

This afternoon, Bitcoin’s price dipped to a low of $92,403 before briefly recovering. Throughout the holiday season, Bitcoin and other cryptocurrencies have generally performed well in the bull market. But, Bitcoin’s lackluster performance since hitting its all-time high last week has dampened expectations for a grand celebration in the near future.

Cryptocurrency analyst, Mr. Crypto, emphasized the impressive growth patterns of Bitcoin, pointing out substantial increases around the holiday season from Christmas to New Year in 2016 and 2020 – two years which occurred just before the market reached its highest points.

I’m ready for the #Bitcoin santa rally!

— Mister Crypto (@misterrcrypto) December 22, 2024

As a crypto investor, I’m eagerly anticipating whether Bitcoin will replicate its impressive post-Christmas performance, as history suggests it has done so eight out of ten times in the last decade (2014-2023), according to a recent study by CoinGecko. This phenomenon is often referred to as the “Santa Claus rally.

Over the week from December 27th to January 2nd, the total value of cryptocurrencies increased by 0.7% to as much as 11.8%, during these rallies. Although Bitcoin is experiencing a drop today, some altcoins are indicating promising signs of recovery. As we speak, Ethereum and other top-tier altcoins are showing gains ranging from 3% to 4%.

Source: CoinGeckco

Altcoins Preparing for a Santa Claus Rally?

On Tuesday, according to blockchain analysis company Santiment, altcoins experienced a substantial surge, even though Bitcoin briefly plummeted to around $92,400 before bouncing back slightly. Those who bought into speculative cryptocurrencies during the dip have enjoyed positive returns, the firm noted.

Source: Santiment

As a researcher delving into the world of cryptocurrencies, I’ve observed and confirmed the breakout and retest of Bitcoin’s dominance rising wedge pattern, indicative of the onset of what is known in the crypto community as ‘altseason’. This signals an exhilarating phase ahead where altcoins are predicted to pick up pace. Traders should brace themselves and get ready for this dynamic period.

Source: Captain Faibik

On December 27th, it’s possible that crypto markets could see heightened turbulence due to approximately $18 billion in Bitcoin and Ethereum (ETH) options contracts expiring. Moreover, Bitcoin’s public sentiment has plunged to its lowest point this year on December 22nd, which could be a precursor for an upturn in the coming days.

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2024-12-24 12:51