Bitcoin’s recent rally has sparked cautious optimism among prominent traders, suggesting bullish momentum is building amid reduced holiday market volatility.
Skew Highlights Key Bullish Signals
Renowned trader Skew shared insights on the current Bitcoin trends, noting encouraging signs in the market. In a recent X post, Skew stated:
“So far, this bounce has played out here with price retesting the systematic trend which led price from $68K -> $108K.”
Skew highlighted a bullish divergence in the Relative Strength Index (RSI) on the 4-hour chart and described the failed attempts to push BTC/USD lower as a “failed auction.”
While optimistic, Skew remains vigilant, citing three key confirmations for sustained bullish momentum:
- Reclaiming the systematic trend.
- Sustaining strength above the Point of Control (PoC).
- Maintaining a strong bid in the market.
Holiday Rally Propels Bitcoin to $98K
Bitcoin surged past $98,000 on December 25, fueled by a timely holiday rally. Daily gains of $4,000 showcased a break in price volatility, drawing further attention to the crypto market.
Material Indicators co-founder Keith Alan emphasized Bitcoin’s current price range, defined by critical simple moving averages (SMAs):
- 21-day SMA: ~$99,600.
- 50-day SMA: ~$94,650.
Alan questioned which level would break first, noting Bitcoin’s recent struggle to sustain above the 21-day SMA after maintaining support since mid-October.
Mixed Signals in the Market
Despite the rally, not all metrics pointed to a bullish trajectory.
- U.S. spot Bitcoin ETFs recorded $1.5 billion in outflows over four days, including $338.4 million on Christmas Eve, according to UK-based Farside Investors.
- Traditional finance markets in the U.S. closed for the holiday, providing temporary relief from selling pressure.
Crypto investor Satoshi Stacker remarked:
“US tradfi markets are closed today so $BTC gets a break from the recent selling.”
South Korea’s Bitcoin Demand Rises
On-chain analytics platform CryptoQuant offered a silver lining: increased Bitcoin exposure among short-term holders (STH) under three months, particularly driven by South Korean demand.
Contributor Joo Hyun Ryu noted a spike in the Kimchi Premium—a price gap between South Korean exchanges and global counterparts—reaching 5.12%, signaling robust local interest.
“This sharp correction in the market appears to be attracting new investors, evidenced by a 3 percentage point increase in the share of STH within just one week,” Ryu explained.
In November, South Korea’s cryptocurrency user base surpassed 15 million, with deposits on the nation’s top exchanges doubling from 4.7 trillion won ($3.2 billion USD) in October to 8.8 trillion won ($6.03 billion USD).
A Bright Future for Bitcoin?
The growing interest from South Korean investors and robust market support amid global mixed signals reflect optimism about Bitcoin’s potential. With traders closely monitoring key levels and trends, Bitcoin’s trajectory remains a focal point for the global crypto community.
For in-depth coverage and expert analysis on cryptocurrency trends, visit CentBit.Online, Bangladesh’s leading platform for crypto and blockchain expertise.
