Is the Santa Claus rally coming to an end? Don't miss its inevitable impact on the cryptocurrency market!

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The Santa Claus rally has historically been associated with bullish sentiment, tax-driven buying, and increased retail participation. However, recent events have triggered volatility, including the expiration of over $2.6 billion in Bitcoin and Ethereum options.

Due to traders adjusting their positions, options expiration typically leads to price fluctuations.

On-chain data shows mixed signals. Whale activity has slowed, with a decrease in recorded large transactions, while retail investors continue to accumulate.

At the same time, technical indicators such as the Relative Strength Index (RSI) for BTC and ETH are hovering around neutral levels, indicating a lack of clear directional momentum.

The performance of the rally in the coming days will largely depend on key resistance levels. Bitcoin faces a psychological barrier at $100,000, while Ethereum needs to reclaim $3,500 to restore bullish momentum.

The Bollinger Bands indicate a decrease in volatility, but any breakout could have significant implications.

For those navigating the current market, risk management is crucial. Investors should pay attention to momentum changes, especially MACD and RSI, while also monitoring macroeconomic trends and regulatory updates that may affect sentiment.

Although the Santa Claus rally has not led to explosive growth, its potential has not completely faded. As the market moves into 2025, next week will be a critical week.

For cryptocurrency investors looking to seize end-of-year opportunities, staying informed about market conditions and adapting to the landscape is key.

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