Bitcoin (BTC) didn’t bring much holiday cheer to investors as it remained under $100,000. BTC has been marginally down over the last 24 hours and is trading at around $98,100. The price dipped to $92,500 on Tuesday before recovering. However, analysts expect a further downside as whale transactions reach a two-year high.
Most cryptocurrencies opened Boxing Day in the red, with Ethereum (ETH) down almost 2% and trading around $3,430. Ripple (XRP) is also in the red, down by 2.24%, while Solana (SOL) is down almost 2% and trading around $195. Marginal losses were also reported by Dogecoin (DOGE), Cardano (ADA), Tron (TRX), Avalanche (AVAX), Chainlink (LINK), Hedera (HBAR), and Polkadot (DOT). The overall crypto market cap is down by 0.70% and currently sits at $3.41 trillion.
Could We See A Post-Christmas Rally?
Historical price trends for Bitcoin (BTC) suggest a recurring pattern of strong upward momentum after Christmas, especially during halving cycles. The trends show BTC enters a profit zone after each halving event, with the price increasing substantially after the holidays. BTC saw a modest consolidation before a staggering 9,000% rally after the 2012 halving. The 2016 halving saw a similar post-Christmas rally which eventually fueled the 2017 bull run. The trend repeated in 2020 when BTC surged to an all-time high post-Christmas.
According to analysts, BTC’s price pattern could be attributed to seasonal market dynamics. Year-end institutional balance sheet closures and renewed capital inflows often drive investments. As institutional investors adjust their investments to manage tax liabilities and align with their investment goals, it could increase liquidity and volatility.
MicroStrategy Purchases More Bitcoin
Michael Saylor’s MicroStrategy announced the purchase of 5,000 BTC, capping a frenetic buying spree that began in November. The company has since added 113,000 BTC to its reserves, worth around $11 billion. The firm now owns around 444,000 BTC, worth a staggering $44 billion. The purchase comes as the firm was added to the Nasdaq 100, an index of the largest non-financial companies on the stock exchange. MicroStrategy funds its BTC purchase by using surplus cash along with equity and debt issuances, a strategy that has come under criticism from market analysts,
“Eventually, the debt will far eclipse equity, the trading premium will disappear, the conversion prices on the notes will feel unreachable, and equity price will collapse under the weight of senior debt, particularly during a gnarly Bitcoin dip.”
Russia Imposes Six-Year Ban On Crypto Mining
The Russian government has imposed a six-year ban on crypto mining in ten regions until 2031 due to the mining industry’s high power consumption. The ban places temporary restrictions during periods of peak demand, will come into force on January 1, and end on March 15, 2031. Russia legalized crypto mining earlier this year, with the law coming into force last month. However, it has banned using cryptocurrencies as legal tender for regular payments domestically but allows cross-border payments using crypto to evade sanctions.
Russia Using Bitcoin In Foreign Trade
Russia is using Bitcoin (BTC) in foreign trade and to settle international payments after legislative changes to counter Western sanctions. Sanctions imposed by Western nations have significantly complicated Russia’s trade with major trading partners, including China and Turkey, with banks wary of processing transactions linked to Russia. Russia permitted the use of cryptocurrencies in foreign trade and legalized cryptocurrency mining. Russia’s finance minister, Anton Siluanov, stated,
“As part of the experimental regime, it is possible to use Bitcoin, which we have mined here in Russia (in foreign trade transactions). Such transactions are already occurring and we believe they must be expanded and developed further. I am confident this will happen next year.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has struggled since setting a new all-time high on December 17, reaching $108,268. Since then, it has declined substantially, dropping below $100,00 and the 20-day SMA over the next few sessions. The price continued to fall as the Christmas week began, as it plummeted to a low of $82,469 on Monday before recovering to current levels. However, traders expecting a move above $100,000 were disappointed despite MicroStrategy purchasing another significant chunk of BTC. BTC’s drop began after hawkish comments by Federal Reserve Chair Jerome Powell. Powell’s comments about inflation and future rate cuts sparked a bearish reaction across the market, with cryptocurrencies plummeting.
The markets also saw an increase in whale activity as large investors rebalanced their positions for the following year. BTC’s decline from its all-time high has coincided with this increase in whale activity. On-chain data has revealed the average transaction size for BTC jumped to $306,000 on Monday, the highest since November 2022.
After reaching a new all-time high last Tuesday, BTC registered a significant decline on Wednesday, dropping almost 6% and settling at $100,195. BTC reported considerable volatility on Thursday as buyers attempted a recovery and sellers sought to lower the price. Sellers ultimately gained the upper hand, and BTC fell from an intraday high of $102,792 to slip below $100,000 and the 20-day SMA and settle at $97,703. Selling pressure persisted on Friday as BTC dropped to an intraday low of $92,072. However, BTC recovered from this level as buyers entered the market and registered a marginal increase to settle at $98,124. Buyers attempted a move past $100,000 and the 20-day SMA on Saturday as BTC rose to an intraday high of $99,942 before losing momentum. As a result, BTC dropped by 0.63% and fell to $97,505.
Source: TradingView
Sellers retained control on Sunday as bearish sentiment registered a sharp increase. As a result, BTC dropped by 2.26% and settled at $95,303. The current week began with BTC experiencing volatility again as it rose to an intraday high of $96,530 and fell to an intraday low of $92,469 before settling at $94,830. Despite facing considerable bearish sentiment, BTC recovered on Tuesday, rising just above 4% and settling at $98,677. Buyers retained control on Wednesday as BTC rose to $99,409. However, they could not go past the 20-day SMA and $100,000. The current session sees BTC back in the red, with the price down by 1.40% and trading at $98,020.
If BTC sees further downside, it drop to $95,000. If this support level is breached, the price could drop to $90,000. On the other hand, if buyers regain control, BTC could attempt to go above the 20-day SMA and reclaim the $100,000 level.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has struggled to reclaim $3,500 as it tries to build momentum after a substantial drop that dragged it below $4,000. ETH reached an intraday high of $4,106 on Monday (December 16) before dropping by 2.33% on Tuesday to settle at $3,892. Bearish sentiment intensified on Wednesday as ETH slipped below the 20-day SMA and settled at $3,625. Buyers attempted a recovery on Thursday as ETH rose to an intraday high of $3,762. However, they lost momentum after reaching this level, allowing sellers to take over. As a result, ETH dropped almost 6% to go below $3,500 and settle at $3,415. Friday saw ETH plummet below the 50-day SMA as it fell to an intraday low of $3,096. Despite the bearish start to the day, ETH recovered from this level to go above the 50-day SMA and settle at $3,470 after an increase of 1.62%.
Source: TradingView
ETH was back in the red on Saturday, dropping almost 4% to go below the 50-day SMA and settle at $3,337. Sellers retained control on Sunday as the price dropped by 1.72% and settled at $3,279. ETH made a strong recovery on Monday, rising over 4% to move above $3,400 and settling at $3,419. Tuesday saw volatility return as buyers and sellers struggled to establish control. Ultimately, sellers gained the upper hand as ETH rose just over 2% to move past the 50-day SMA and settle at $3,491. ETH could only register a marginal increase on Wednesday as selling pressure intensified near the $3,500 resistance level. The current session sees ETH back in the red, down just over 2% and trading at $3,420.
If sellers retain control, ETH could drop to the $3,200 support level. If this level is breached, it could fall to $3,000 before recovering.
Solana (SOL) Price Analysis
Solana (SOL) has struggled to move past the 20-day SMA since dropping below it at the beginning of December. Bearish sentiment around the Ethereum killer intensified last week after it failed to go above the 20-day SMA on Tuesday, losing momentum after reaching an intraday high of $223. Bearish sentiment took over on Wednesday as SOL fell by 7.50% to go below the 50-day SMA and settle at $206. Sellers retained control on Thursday as SOL slipped below $200, dropping over 6% and settling at $193. SOL dropped to an intraday low of $175 on Friday as sellers tightened their grip on the market. However, it recovered from this level to reclaim $190, register a marginal increase, and settle at $194.
Source: TradingView
Bearish sentiment returned over the weekend as SOL dropped almost 7% on Saturday and 0.55% on Sunday to settle at $180. However, SOL rebounded from the $180 support level on Monday, registering an increase of 5.30% and settling at $189. Buyers retained control on Tuesday as SOL rose by almost 4% and settled at $197. Sellers attempted to reclaim $200 on Wednesday but could only register a marginal increase and settle at $197. The current session sees SOL back in the red as sellers re-established control. SOL is currently down by almost 4% and trading around $189.
Bittensor (TAO) Price Analysis
Bittensor (TAO) slipped below the 50-day SMA at the beginning of last week, as its recent decline showed no signs of stopping. By Thursday, TAO had dropped to a low of $434 before settling at $446. Sellers attempted to drag TAO lower on Friday as it dipped to an intraday low of $400. However, it recovered from this level to register an increase of nearly 6% and settle at $472. Buyers attempted to go above $500 on Saturday as TAO rose to an intraday high of $507. However, it lost momentum after reaching this level, allowing sellers to take over. As a result, TAO dropped almost 4% and settled at $455. Sellers retained control on Sunday as TAO dropped by 1.23% to end the weekend on a bearish note.
Source: TradingView
The current week began with a substantial increase as TAO rose to $484, rising almost 8%. Buyers retained control on Tuesday as TAO went above $500 to settle at $503 after an increase of nearly 4%. However, sellers retook control on Wednesday as TAO lost momentum after reaching an intraday high of $522. As a result, TAO registered a marginal drop and fell to $500. The current session sees TAO down over 5% and trading at $473 as sellers look to drive the price toward $400.
Fantom (FTM) Price Analysis
Fantom (FTM) turned bearish at the beginning of last week, registering a drop of 3.03% on Monday. Sellers retained control on Tuesday as FTM dropped over 5% and settled at $1.31. Bearish sentiment intensified considerably on Wednesday as FTM plummeted below the 20-day SMA and the $1.20 support level, falling to $1.11. Buyers attempted a recovery on Thursday as FTM rose to an intraday high of $1.18. However, they lost momentum after reaching this level, and FTM dropped over 10% to slip below $1 and settle at $0.99. Sellers drove FTM to an intraday low of $0.84 on Friday. However, FTM recovered from this level to move above the 50-day SMA and settle at $0.99.
Source: TradingView
Buyers attempted to reclaim $1 on Saturday as FTM rose to an intraday high of $1.09. However, FTM failed to stay at this level and fell back, dropping 2.44% and settling at $0.96. Sellers retained control on Sunday as FTM dropped below the 50-day SMA after a marginal decline. FTM recovered on Monday, rising almost 8% to move above the 50-day SMA and settling at $1.04. However, sellers were back in control on Tuesday as FTM fell below $1 to $0.99, but not before dropping to an intraday low of $0.90. FTM slipped below the 50-day SMA on Wednesday after dropping 3.35%. The current session sees FTM down just over 3% and trading around $0.93.
Celestia (TIA) Price Analysis
Celestia (TIA) is trading between $4.90 and $5.50, looking to prevent a drop below the $4.50 support level. TIA fell below the 50 and 200-day SMAs last week and hit a low of $5.12 on Thursday. Sellers initially retained control on Friday as TIA dropped to an intraday low of $4.34. However, it recovered from this level to register an increase of almost 2% and settled at $5.22. TIA was back in the red over the weekend, dropping nearly 6% on Saturday and 0.51% on Sunday to end the weekend at $4.90.
Source: TradingView
The current week began with TIA registering an increase of almost 9% to go above $5 and settle at $5.32. Buyers retained control on Tuesday as TIA rose by 1.08% and settled at $5.38. However, TIA was back in the red on Wednesday, dropping almost 5% and settling at $5.11. The current session sees TIA down just over 4% and trading around the $4.90 mark.
Internet Computer (ICP) Price Analysis
Internet Computer (ICP) fell below the 50-day SMA on Thursday, dropping almost 9% and settling at $10.14. The price fell to an intraday low of $8.82 on Friday as sellers attempted to drive ICP below the 200-day SMA. However, the price recovered from this level to register an increase of 4.14% and settled at $10.56. ICP was back in the red on Saturday, dropping 4.55% after reaching an intraday high of $11.38 and settling at $10.08. It dropped below $10 on Sunday after falling almost 2% and settling at $9.89.
Source: TradingView
The current week began with ICP registering an increase of 8.59% and settling at $10.74. Buyers retained control on Tuesday as the price rose by almost 6% to move above the 50-day SMA and settle at $11.34. However, it fell back on Wednesday, dropping by 1.68% to $11.15. The current session sees ICP down over 5% and trading at $10.57.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
