The S&P 500 has a historical track record of performing well during “Santa Claus rallies,” closing higher 77% of the time since 1950. On the other hand, Bitcoin has been less consistent during this year-end trading window, rising only half the time in 14 holiday seasons since its inception in 2010. While stocks follow traditional trading calendars, Bitcoin’s 24/7 market creates a different year-end dynamic.
Tyler Richey, a technical analyst and associate editor at Sevens Report Research, noted that Bitcoin’s trading volumes have been decreasing steadily since the price of BTC surpassed $100,000 earlier this month. This decline in trading volume is seen as a sign that bullish sentiment is waning, according to Richey. Despite this, Richey sees potential for a recovery in Bitcoin’s price.
From a technical perspective, Richey believes that Bitcoin could rally towards $100,000 after recent weakness triggered by the Federal Reserve’s latest moves. He pointed out that if there is a break above the congestion resistance at $100,000-$101,500 on the daily chart, a retest of the current close and intraday highs of $106,000-$108,000 would become extremely likely. However, it is important to note that this information is not considered investment advice.
Overall, while the S&P 500 has historically performed well during Santa Claus rallies, Bitcoin’s performance during year-end trading has been less consistent. With Bitcoin’s 24/7 market creating a unique year-end dynamic, technical analyst Tyler Richey believes there is potential for a recovery in Bitcoin’s price despite the decrease in trading volumes. As always, it is important for investors to conduct their own research and make investment decisions based on their individual financial goals and risk tolerance.
