Bitcoin (BTC) "Christmas Rally" May Be Risky, XRP Remains Steady, Dogecoin (DOGE) Trading Volume Suggests Bearish

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Bitcoin's (BTC) "Christmas Rally" is usually a period of optimism and price increases during the holiday season, but current signs suggest that the market may be at risk. Although Bitcoin has successfully rebounded after a brief break below the 50-day moving average (EMA) at $95,000, and the current price is close to $97,000, this wave of rebound may indicate a continuation of the downward trend. The market is worried that this rebound may form a lower high, which is in line with the traditional bearish signal.

If Bitcoin fails to break through the previous high of $104,000, it may lose its recent positive momentum and increase the risk of further downside. In particular, if it fails to recover higher prices, Bitcoin may head towards key support - the 100-day moving average (EMA) of about $84,500, which requires special attention.

Uncertainty in market sentiment and trends

Bitcoin's sentiment and momentum have changed dramatically in recent times, and selling pressure continues to increase. While Bitcoin attempts to rebound, volume data shows a mixed picture of market conditions. If this pattern continues, the recent rebound may not last. Investors who hope to gain more gains may fall into a trap.

This situation has heightened the market's uncertainty about the future direction of Bitcoin. If Bitcoin fails to break through the psychological barrier of $100,000, it will face greater risk of correction. The possible target price is $84,500, or even lower, and may fall to $76,000.

Proceed with caution and pay attention to key levels

Although Bitcoin's "Christmas rally" seems promising at first glance, the market risks are gradually increasing. As the rebound may form lower highs, this current rebound is crucial. Investors are advised to operate with caution during the holiday period due to high volatility in the market. To rekindle bullish sentiment, Bitcoin needs to significantly break through the current resistance level; otherwise, the downward trend may further intensify.

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