U.Today – Crypto enthusiasts also welcome the idea of ​​a Santa Rally; this is not just a concept found in traditional markets. In essence, it describes an increase in asset prices in late December that is often driven by optimism, lower trading volume and positive sentiment during the holidays.

Although irreversible, this event was noted in December’s historic performance. Alex Kruger, an economist, recently highlighted this trend when he declared that the Santa Rally is finally here.

The recent Bitcoin price recovery after the decline of the 50 EMA appears to support his statement. Due to the strength of this level of support, which is around $ 94,500, Bitcoin was able to recover to $ 98,000, which restores expectations for a higher end of the year. Currently, the Bitcoin chart shows a possible change in momentum. Bitcoin surged close to the psychological $100,000 threshold after breaking through a key support level. But things are not so smooth yet.

The moderate volume accompanying the upward movement so far indicates that, without stronger buying pressure, the rally may lose momentum. Regaining the $100,000 mark would be a huge psychological victory for Bitcoin if it continues to climb, possibly paving the way for future gains.

However, if the price does not rise above $100,000, there may be consolidation or even a retest of the $94,500 support. If that level is broken, Bitcoin could move towards the next important support level, which is $85,000. There is a surge of optimism after the Santa Rally, but traders should be careful.

Although a more bullish phase could start the rally, cautious expectations are advised given the lack of strong volume and continued uncertainty in the market. Bitcoin’s stability at critical levels offers some hope for now, but whether this holiday cheer has lasting momentum will be determined in the coming days.

This article was originally published on U.Today