TL;DR
Bitcoin surpassed $98,500 after a 5.65% increase, driven by large volume buyers in the spot market, reviving the “Santa rally.”
Optimism grows in the crypto market. BTC reached new local highs and over $40 million in short liquidations in 24 hours.
Despite the growth, analysts like Rekt Capital warn that the risk of a correction remains if certain support levels are not regained.
Bitcoin has had a strong performance on the latest market session, surpassing $98,500 after a 5.65% increase. The rise was driven by large volume buyers in the spot market, known as the catalysts for the so-called “Santa rally,” a phenomenon that has revived hopes of a bullish rebound in the crypto market.
BTC reached new local highs on various exchanges, such as Bitstamp. The recovery comes after an unstable start that saw BTC test December lows.
Bitcoin’s growth has intensified optimism among many analysts, who view the appearance of large buyers as a positive sign. In particular, popular X user Exitpump expressed hope that the Santa rally has finally arrived in the crypto ecosystem. The increased buying pressure is also reflected in liquidation data. Nearly $40 million in BTC short liquidations were recorded in the last 24 hours, contributing to the bullish momentum.
Great Day for the Crypto Market
Regarding other cryptocurrencies, Ethereum (ETH) rose 5%, reaching $3,500. XRP (XRP) had an excellent session, climbing 7.5% to $2.33. BNB (BNB) rose 2.1%, bringing its value close to $700 per unit. Solana (SOL) also came very close to $200 after increasing 6.1%.
On the other hand, Cardano (ADA) trades at $0.94 with a 6.6% growth. The standout performer was Avalanche (AVAX), which jumped 12.2% and surpassed $41 per unit. Lastly, Dogecoin (DOGE) also increased 7.5%, hovering around $0.334 per unit.
Warnings and Forecasts for Bitcoin’s Future
However, some analysts remain cautious. Trader and analyst Rekt Capital pointed out that while Bitcoin has shown signs of a rally, there is also the risk that previously lost support levels will not be regained, which could lead to a correction for BTC and consequently for the market. He particularly emphasized the importance of reclaiming these levels to avoid further declines and maintain the positive trend.
On the other hand, Bitcoin outperformed U.S. stocks. The S&P 500 and Nasdaq 100 indices both registered increases of less than 1%. This behavior reinforces the idea that the crypto market may be starting to gain traction again, although uncertainty persists due to inherent risks. Bitcoin now faces the task of consolidating its growth and overcoming resistances to continue its bullish trajectory
