Santa’s Crypto Rally Recipe

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Bitcoin addresses holding 100 to 10,000 BTC have raked in $726 million in BTC over the past nine days. USDT, BUSD, and DAI stablecoins are piling up, signaling that a Santa Claus rally is just around the corner. The $1.4 billion worth bitcoin left exchanges on Wednesday, reducing selling pressure on the asset.

Bitcoin and cryptocurrencies saw a price resurgence and BTC and Ethereum hit their highest level since the FTX exchange collapsed on Tuesday. Santiment experts noted the euphoria in the crypto market as outflows of bitcoin and stablecoins increased and whales scooped up assets on exchanges.

Also Read: Cryptocurrency Prices Rally in Disinflation Trade, Bitcoin Bulls Fight US CPI Jitters

Bitcoin and Stablecoin Whales Accumulated Assets for Price Rise

Large Bitcoin network wallet investors continued the massive accumulation of BTC. Exchanges witnessed a $1.4 billion outflow of Bitcoin on Wednesday, according to data from Bitcoin Magazine.

Whales picked up large volumes of stablecoins, Tether (USDT), Binance USD (BUSD), and DAI in anticipation of an upcoming Bitcoin price rally. The accumulation by the whales is considered bullish for the asset.

Bitcoin addresses holding between 100 and 10,000 BTC added $726 million in assets to their portfolio in less than ten days. Data from crypto-intelligence tracker Santiment reveals that USDT, BUSD, and DAI holdings of whales with between $100,000 and $10,000,000 in stablecoins are growing rapidly.

Accumulation of BTC, USDT, BUSD and DAI by whales

Trader enthusiasm must remain high and fear low, in order to drive Bitcoin price higher, according to Santiment’s recent tweet.

The Bitcoin Santa rally around the corner?

December is the peak of the holiday season which has given rise to the phrase “Santa Gathering”. It is a phenomenon where stock markets and cryptocurrencies rally in the days leading up to Christmas. Investors think December is a lucky month and cryptocurrencies may rally as excitement spreads among traders.

BTC/USD Price Chart

Bitcoin price is currently in a short-term uptrend that started on November 22 (see the 4-hour chart above). During the first ten days of December, the price of Bitcoin respected the support of the 50-day exponential moving average (50-day EMA) and the resistance of the 200-day EMA. On December 13, however, the price broke above the two MAs and surged higher. The two moving averages now meet at $17.327, a key support level for Bitcoin price. If the 50 EMA closes above the 200 EMA, this will also signal a bullish golden cross continuation pattern for the asset.

The overall BTC price trend on the daily and weekly charts, however, remains bearish, suggesting the potential threat of further declines. If Bitcoin price breaks and closes below the low of the 4-hour chart channel at around $17,200, it would suggest that the short-term trend may shift and fall back in line with the longer-term downtrend. A further break below the December 12 low at $16,880 would seal the deal for the bears and suggest further decline. A possible downside target after that could be the 61.8% Fibonacci extension of the height of the channel, at $16,475, or for those with a risk appetite, the 100% extrapolation at $16,065. .

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