Journalist
Posted:
Christmas marks the official start of the holiday season.
Yet investors still seem skeptical about ‘buying the dip’. Historically, the period from late December to early January is often a bullish window. For example, in the last cycle, the total market capitalization increased by almost $200 billion.
This time, however, the cycle started with a 0.82% dip, losing nearly $30 billion. Still, given the recent volatility, these outflows are relatively small, suggesting another Bitcoin is coming [BTC] holiday rally is not off the table yet.
Source: TradingView (BTC/USD1)
This volatility, shown in the graph, has led to a “manipulation” debate.
For context, on December 24, the BTC/USD1 pair on Binance briefly fell from an opening of $87,000 to $24,000, marking a sharp 73% decline. The timing of this move in particular only contributed to it fuel for the story.
Tight liquidity during the holidays and subdued retail activity quickly turned attention to smart money driving up prices. The question remains: Did this move derail the holiday rally, or does it reset Bitcoin for the next move higher?
Bitcoin continues to battle against volatility this holiday season
BTC is clearly locked in a tug-of-war, with $85k as the battleground.
Sentimentally speakingthe market is in a ‘fear zone’, historically a strong accumulation phase. This shows that despite Binance’s manipulations, the market FUD remained in control, creating a bullish divergence.
In support of this move, BTC shows a solid technical setup. With an intraday gain of 2.20%, it is approaching the key FOMO zone at $90,000. Consequently, the short cluster is now at risk of being wiped out.
Source: TradingView (BTC/USDT)
In short, Bitcoin’s resilience to FUD strengthens the bid wall.
In this context, the recent whale activity on Binance (a sudden 73% drop followed by a quick recovery to $85,000) played out like a classic liquidation move, shaking out weak hands and testing the market’s conviction.
As a result, with that volatility behind it, Bitcoin’s 2.2% intraday gain looks solid, showing that strong hands are in control and that BTC’s holiday rally remains on track, with $85,000 as the launching pad.
Final thoughts
- Despite Binance’s whale-induced volatility, Bitcoin’s bid wall and bullish divergence indicate accumulation and sound technical setup.
- The 2.2% intraday gain strengthens $85K as a launch pad, keeping the BTC holiday rally on track.