Crypto forecast for the holidays, 23 December 2024 – 01 January 2025🎄
Bitcoin futures remain range-bound as we head into the holiday season, trading between $92,000 (support) and $98,000 (front). While the crypto community often considers it a “Santa rally,” recent developments in broader financial markets suggest caution. The pullback in the stock market, which started after the FOMC meeting on December 19could weigh on sentiment in the crypto market, reducing the chances of a holiday rally.
Last year, similar hopes for a year-end boost ended in disappointment, with Bitcoin revenues posting a 1.7% going down during Christmas week. This historical context, along with the latest market turmoil, underscores the importance of monitoring key levels as guidance, especially during this uncertain trading period.
Market dynamics and key levels to watch 🔍
Bitcoin futures are currently trading just below today's Volume Weighted Average Price (VWAP) from $95,000which is the main reference for intraday movements. Trading below VWAP indicates selling pressure, adding more weight to the cautious tone in the market.
Core levels provide much-needed structure in this unpredictable environment:
- Support at $92,000: A break below this level could trigger further bearishness, indicating that sellers are in strong control.
- Against $98,000: A breakout above this level would likely generate buying interest and could rally towards the $100,000 psychological milestone.
Despite the current opinions, Bitcoin has an amazing history on the market. These key levels are essential channels to help traders overcome potential volatility, whether the price is moving up or down.
Christmas crypto bottom line: how to navigate the holiday uncertainty 🚨
The opportunities Crypto Rally Santa appears lower this year, with broader market sentiment following cautiously after recent stock market headwinds. However, Bitcoin is still very unpredictable, and traders should prepare for breakouts or breakdowns as it approaches the limits of its current range.
Without any big move by the crypto king, it is unlikely to expect any special action from alt coins.
Whether Bitcoin moves up or down, $92,000 and $98,000 provide critical guidance to define the next steps in this volatile market. Traders are encouraged to watch volume, price action, and the VWAP and $95,000 to determine movement. Patience and disciplined risk management will be key during this holiday season. Always invest in crypto and/or trade BTC at your own risk only.
