Bulls Stay in Charge
As the holiday celebrations unfolded, Bitcoin (BTC) managed to hold onto a significant support level of $50,000, effectively dodging any unwanted Christmas surprises. After briefly hitting local highs above $51,500, BTC/USD showed a steady hand amidst the thin trading liquidity typical of the festive season. With many traders likely sipping hot chocolate instead of monitoring charts, the crypto market took on a curious calm.
Looking Towards the $53K Target
In the realm of cryptocurrency trading, every holiday season brings its quirks. Interestingly, as liquidity thinned out, the traders turned their attention to the next big target—pushing for a market capitalization value of $1 trillion at the $53,000 mark. Popular trader Pentoshi noted a potentially pivotal moment could come from sellers aiming to drag BTC/USD down to $46,000, only to snatch it back up for a tasty rebound.
A Cautious Bear Turnaround?
Pentoshi, who has made quite an impression in the trading community, emphasized that while bears were initially on the offensive, driving prices down, they could quickly shift dynamics. “Bears become bulls short term like myself,” he mused—something many traders are keen to see translate into action.
Year-End Reflection: Up $21,000 Since January
While traders celebrated the holiday spirit, the looming yearly close stirred curiosity. Despite the ups and downs throughout the year, Bitcoin was boasting an impressive rise of $21,000 compared to January 2021. It’s a good reminder that crypto markets can be as unpredictable as finding a good fruitcake at Christmas!
Is the $100,000 Halving Cycle Average Still Alive?
As the year comes to a close, PlanB, the creator of the stock-to-flow model, reflected on the current state of Bitcoin. Although his more ambitious predictions regarding a $135,000 price fell short, the average price forecast for this halving cycle at $100,000 remains a mouthwatering prospect. With Bitcoin’s price remaining within the standard deviation band of $50K to $200K, many are watching closely to see if it stays valid over the next couple of years.
