Bitcoin Bounces Back

Bitcoin (BTC) has managed to claw its way back above the pivotal $50,000 mark, a number that seems to hold more psychological weight than a toddler holding on to their parent’s leg in a crowded store. On December 23, optimism reigned as the S&P 500 also reached new heights, suggesting that the earlier panic selling due to the omicron variant may finally have eased.

A Trend of Long-Term Holding

Recent data reveals noteworthy trends in Bitcoin accumulation. The on-chain analytics firm Glassnode notes that an impressive 100,000 Bitcoin are transitioning from a “liquid” to an “illiquid” state every month, meaning they’re heading to wallets with little to no spending activity. It’s like Bitcoin investors are hibernating for winter, baby!

Exchange Supply Dwindling

More signs of confidence emerging from the crypto world: the total Bitcoin held on exchanges has dropped from 9.5% in October 2020 to a mere 6.3% this December. That’s the lowest level in 2021, meaning investors are probably feeling more relaxed than a koala on a tree branch, keeping their Bitcoin out of circulation.

Charting the Top 10 Cryptocurrencies

Now, let’s unravel some critical charts from the top 10 cryptos in the market to gauge whether this recovery is sustainable or merely a bear trap:

• BTC/USDT: BTC closed above the 20-day EMA of $49,720 recently, suggesting sellers might just be throwing in the towel. With potential climbs toward $52,314 and $55,560, this bullish momentum could reshape our assumptions.
• ETH/USD: Ether (ETH) broke free from a descending channel, exciting bulls everywhere. A sustained price above $4,060 could pave its way back to the all-time high of $4,868.
• BNB/USDT: Binance Coin (BNB) remains in a precarious position at its downtrend line. Should it push above, the bulls are likely to come out in full force!
• SOL/USDT: Solana (SOL) has also recently breached the 20-day EMA, and its price could rise towards $204.10 if it manages to hold this level.

What’s at Stake?

In the ever-turbulent world of cryptocurrency, every upward movement comes with its risks and uncertainties. As bulls fight their way back, whether we’re experiencing a “Santa rally” or a delayed bear snooze remains to be seen. For now, however, it seems cryptocurrency enthusiasts will have a very Merry Christmas indeed!