- As Christmas approaches, Bitcoin follows familiar patterns, with the holiday season often signaling price fluctuations and market momentum.
- Bitcoin’s support levels and resistance patterns suggest a potential breakout, with a price target of $97.8K after closing the CME gap.
- With fewer institutional trades during the holidays, Bitcoin may experience a FOMO rally as conversations about crypto spark new investor interest.
As the Christmas season draws near, Bitcoin is again behaving in a predictable manner. In the past, the holiday season has been characterized by price fluctuations in Bitcoin especially within the periods leading up to a halving event.
Bitcoin’s Current Market Range
In a recent YouTube Video, Crypto Rover highlighted that the trading activity of the top cryptocurrency has been ranging in the recent past with a lot of attention being paid to the levels of support and resistance. This weekend, the price of BTC closed below a significant CME gap that was formed last week, and as has been the trend in prior cycles, the gap is expected to be closed soon.
The cryptocurrency is now indicating higher lows, meaning a possibility of breaking through the resistance levels in the upwards direction. A break above the initial resistance level may open the door for a price bounce with the next target at around $97.8K which is right in the middle of the CME Futures gap.
Although the price of BTC has faced some rejections at a critical resistance level, the general market performance of Bitcoin remains positive since it is still confined by a range and has not broken out of it. Also, as the holiday season brings less institutional trading activity, the last month of the year might become a perfect time for Bitcoin to surge with fewer manipulations.
Source: CryptoRover
BTC Dominance and FOMO
Seasonal trends indicate that a slight dip may happen just before the major uptrend – this may be the same scenario as the year is coming to an end. Same thing happened in 2020 before the massive bull run of 2021, and this makes experts sure that the crypto market may be ready for another breakout.
The chart also reveals that Bitcoin’s dominance rises in December, especially around Christmas, as conversations about cryptocurrency spark new investors’ interest. This could cause a “FOMO” rally, as people reach out to friends and family, who may have invested in BTC or at least discuss it with them.
At the current levels of $100K-$108K, a significant short squeeze is anticipated if BTC rises to those levels. In addition, the BTC Halving Cycle Profit Indicator shows that the peak occurs in early 2025. However, the top may occur earlier in the market as smarter investors seek to book their profits before the cycle is over.
Everyone will be watching the final quarter of the year for Bitcoin’s price, while altcoins may see their rise at the beginning of the following year. If history is any indication, the crypto asset could be gearing up for another significant rebound, and therefore, the holiday season may be critical for traders and investors.
