Is Bitcoin Heading For A Santa Claus Rally As The Year Winds Down?

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Bitcoin price has been interesting for several days, falling over the weekend and then jumping above the $50,000 level.

With these recent movements in mind, and noting that 2021 is drawing to a close, many analysts have weighed in on whether the world’s foremost digital currency will experience the so-called. Santa Claus Rally, the climb during the last few weeks of this year and the start of the next one.

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Technical analyst Katie Stockton wrote a weekly note in which she Having said That “Weekly MACD is on ‘sell’ signal for the first time since April, increasing year-end risk, given that there is room for intermediate-term oversold territory.”

she was referring to moving average convergence divergence (MACD), a technical indicator that incorporates multiple moving averages to provide “buy” and “sell” signals.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

John Iadeluca, Founder and CEO of Multi-Strategy Fund bunz capital, responded to Stockton’s observation.

“In terms of historical data, yes, the MACD signal would reduce the chances of bitcoin experiencing a Christmas-time rally.”

“However, I believe it is important for any analyst to know that when evaluating the odds of any year-end rally in the bitcoin price, any said odds will be used to calculate Identifying the ‘events’ that lead to it is critical to any valuation or projection of the price of bitcoin.”

Ben Armstrong, Founder bitboy crypto, also weighed.

“The weekly MACD signal shows the lead up to the May crash, a challenge for bitcoin later this year,” he said.

“At most I can move up to $90k, but that’s only in a very bullish scenario.”

“Traders need to be very careful now that we could face an extended bull run,” Armstrong said.

“Regardless, bitcoin reaching $100,000 is inevitable.”

Scott Melker, a crypto investor and analyst, is the host of Joe Wolf of All Streets PodcastThe addition of MACD offered some perspective on the matter, focusing on the recent selloff and the importance of technical indicators.

“While the bitcoin correction appears to be largely the result of a large spot seller triggering a leveraged market liquidation cascade, it cannot be dismissed as pointless,” he said.

“Bitcoin is now trading between two important levels – 53K and 42K, although one could argue that $39,600 is a more important support, as a break below low and would signal a break in the macro bullish market structure,” They said.

“Bitcoin can be expected to continue for Christmas and beyond until prices can flip to support after breaking 53K,” Melker said.

“The RSI has not yet reached oversold on the daily chart, which could indicate that a more short term downside is possible,” he said.

“Nothing on the charts is clearly bearish, but the chances of an immediate rally have diminished.”

Sean Rooney, Head of Research at Crypto Asset Manager Valkyrie Investing, also weighed in on bitcoin’s short-term outlook.

“After spot selling cascading liquidations on offshore derivative platforms over the weekend, the overall bitcoin market finds itself in a healthy position with little open interest,” he said.

“Bitcoin price broke the 200-day moving average but rebounded strongly from the low by more than 20 percent,” Rooney said.

“A rally to a new all-time high before the end of the year is unlikely, although it would not be surprising to see bitcoin return to its previous range between $53,000 and $60,000.”

Sylvia Jablonski, Co-Founder and Chief Investment Officer for ETF Sponsor defiance etf, took a different approach, speaking of broader developments affecting global asset markets.

“Today’s rebound (10K away from last weekend’s 42K lows), tells me Santa Claus may really be coming to town,” she said.

“Bitcoin and crypto have reacted to the same three headwind forces affecting equity markets. Omicron, inflation and tapers created uncertainty in riskier assets across the board, and crypto was not able to avoid it,” said Jablonski. Insisted.

“I continue to invest in equities because I believe the economic recovery is from strong to stable, with 4.2% unemployment telling me that there is no point in lower fiscal and monetary stimulus, and therefore tapping may be justified. , and Omicron seems so far to be manageable, or less of a threat than detectable.”

“I continue to invest in crypto for the same reasons, but also because I believe that as the crypto ecosystem continues to grow, international adoption continues, there are increasing funds investing in crypto that are in demand. And leads to AUM, and it is understood and accepted among the general public.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, eos and sol.

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