Bitcoin fell 14.5%, raising questions about a possible Santa rebound this December

As 2023 comes to an end, the price of Bitcoin dropped drastically, falling to its lowest level since the end of November. Following a brief rise to $108,000 on December 17, Bitcoin fell to $92442 on the evening of December 23. This means that Bitcoin's price has fallen by an astonishing 14.5% from its high point, dispelling people's hopes for a “Santa rebound,” a phenomenon often seen in historical bull markets, where prices tend to soar during the last few trading days of December.

Normally, the cryptocurrency market shows resilience during the holiday season, as evidenced by the sharp rise in previous years. A recent analysis by CoinGecko highlights that in the past decade, 8 out of 10 years, from December 27 to January 2, saw a strong Santa rebound, and the total market capitalization soared 0.7% to 11.8%. This trend has many investors hopeful about this year's results.

When we compare the current market conditions to previous important cycles, we can see a clear difference. For example, in 2016 and 2020, Bitcoin's price skyrocketed when it reached its peak. Conversely, in December 2021, after peaking at $69,000, the price dropped sharply by about 26%, hampering the expected Santa rally during the holiday season. Given our mood swings in December of this year, we are now wondering if 2025 will experience a growth cycle similar to the previous peak.

Looking ahead, a critical moment for the cryptocurrency market will happen on December 27, when $18 billion worth of Bitcoin and Ether options contracts expire. This type of expiration usually causes fluctuations, leading to large price fluctuations. Furthermore, according to the latest data from the sentiment analysis platform, social sentiment surrounding Bitcoin has reached its lowest point this year, indicating that there may be a turning point in the coming weeks.

The market is currently evaluating trading models for Bitcoin and other cryptocurrencies andTechnical indicators. Experts recommend that traders carefully monitor price resistance levels, especially considering that options contracts are expected to fluctuate after expiration. This is in line with the historical trend of surging volatility before and after such key financial events.

In summary, while recent trends may indicate challenges in Bitcoin and the broader cryptocurrency market, the historical trend of market recovery during the holiday season cannot be ignored. Given the current low level of social sentiment and the impending expiration of a large number of options, there may be opportunities for traders who are willing to handle fluctuations with caution. As always, investors should remain alert and aware of the situation and adjust their strategies according to ongoing market dynamics.

Many of the flatbread orders given to me this morning have yet to reach the entrance. If you go down at night first, then the operation idea will not change. If you go first in the evening. Then you can do a wave of pullbacks in batches here at 96300. The position replenishment point is 97300: the risk control belt is 1,000 points behind the average price, and the target is around 2,000 points

Ethereum batch multi-order layout 3350: position replenishment point 3280: risk control belt is 50 points behind average price: target is 100 points or more, and the spot is still unchanged