Christmas market? Bitcoin rebounded on Christmas Eve, briefly breaking $99,000.
Bitcoin, which had been oscillating below $95,000 for several consecutive days, suddenly rose during the Christmas Eve period (12/24) Taiwan time. As of today (12/25), Bitcoin briefly reached $99,487 at 2 AM Taiwan time, and is now oscillating back to $98,063.
Although Bitcoin is currently experiencing one of its worst December performances, having accumulated a 2% decline over the past 30 days, which dampens market expectations for a 'Christmas rally', the performance last night rekindled hope for some traders.
Traders expect a Christmas rally, with hope appearing in the order book.
According to (Cointelegraph), cryptocurrency trader Exitpump believes that the cryptocurrency market may finally welcome the 'Christmas rally' and shared a chart of exchange order book trading volume, indicating that large-scale spot buyers are entering.
Image source: X/Exitpump Bitcoin Christmas Eve main exchange order book chart.
Data from CoinGlass shows that due to a sudden surge in the cryptocurrency market, there was a total of $235 million in liquidations in the perpetual contract market over the past 24 hours, with $142 million in short liquidations (betting against) far exceeding long liquidations (betting for).
Another analyst, Bitcoindata21, pointed out that Bitcoin performed strongly on Christmas Eve, breaking through the first volume-weighted average price (VWAP) resistance level. If it can break and hold above the $98,500 resistance level next, a breakout to a new all-time high will be imminent.
In addition, the premium on Coinbase exchange also shows a tendency to attempt to break the descending trend line, reflecting an increase in buying pressure during U.S. trading hours.
Image source: X/Bitcoindata21 Bitcoindata21 analyzes Bitcoin trends.
Bitcoin still faces the risk of dipping to $90,000.
Although the exchange order book and Coinbase premium show an increase in buying pressure, not all analysts are optimistic.
Notable analyst Rekt Capital stated that Bitcoin has recently shown signs of a bottoming rebound, but if previous support levels turn into new resistance levels, new downside potential may arise.
From the weekly trend perspective, the orange line in the chart below may represent a new resistance range for Bitcoin. If it breaks and holds above the orange line, it can be seen as a bullish signal.
Image source: X/Rekt Capital Rekt Capital analyzes Bitcoin trends.
FxPro analyst Alex Kuptsikevich predicted that in extreme cases, Bitcoin could suddenly drop to the $70,000 range. However, a correction to $90,000 within the next few weeks is more likely, and this level may attract enough buyers to halt selling pressure.
He stated that the Bitcoin market is still digesting the Federal Reserve's hawkish stance, coupled with the strong gains this year, resulting in profit-taking pressure.
QCP Capital also forecasted in its latest market weekly report that nearly $20 billion worth of Bitcoin and Ethereum options will expire this Friday. As spot prices continue to oscillate in the current region, and options sellers continue to roll over their short positions, this may impact the market.
[Disclaimer] The market carries risks; investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at their own risk.
'Once surged to $99,000! Bitcoin suddenly rebounded on Christmas Eve; how will the Christmas market unfold?' This article was first published in 'Crypto City'.
