Bitcoin offers a great hope that the Santa Rally will be seen at the end of this year. Because the BTC has indeed shown a good resistance against the USDX (the index of the American dollar) which shows its lowest rate for 5 months.
So is it a question of being enthusiastic about this news? Analyst opinion appears to be very mixed with limited hope of recovery. In fact, even if Bitcoin shows a great performance, it is difficult to predict a real bull run for this end of the year. But let’s go back to the arguments of each first to fully understand the story.
USDX weakness is good news for BTC’s Santa Rally
TradingView charts are quite excitings. The last bearish candle was blocked by a rise that brought Bitcoin between the range between $16,800 and $17,000.
Bitcoin in dollar chart with its bearish candle this December 2 – Source: TradingView
Analysts then had that point at $16,800 because bring a new key. A thought to put into perspective as we look at the shares which again fell 1% when the session resumed.
Sees Nunya Bizniz, a well-known crypto Twitter account hit the new S&P 500 price cap.
S&P500 daily:
Downtrend has summarized where price was between the gray and green trend lines and broke back below the 61.8% fib bounce.
This time? pic.twitter.com/envP93eBoL
— Nunya Bizniz (@Pladizow) November 21, 2022
And as we know, Bitcoin is highly correlated with traditional markets. If S&P 500 reaches a ceiling, BTC price may stagnate or even decline within a few days. In short, nothing very exciting at the moment.
The resistance that Bitcoin has shown against the decline of the DXY over the past few days can only give us a boost of hope. one thing is for sure, bitcoin’s resistance to changes in traditional markets and the dollar will be tested.
The recent FTX scandal that caused the market turmoil has not happened so far did not provide conclusive results on the resilience of the BTC signal. It remains to be seen whether he will be able to defy the predictions in the coming days.
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The likelihood of a long-term correction is high according to Pumpcat
Fellow Twitter analyst, Pumpcat, think that Bitcoin will undergo a long-term correction. The reason? The support on DXY was recently broken. And this will have a direct impact on BTC.
Waiting for the close 6M ahead #DXY. I think the likelihood of a long-term correction going forward is high.
You have to be flexible and follow what the charts show us: 🟧 Retest a possible failed macro channel.#dollar $DXY https://t.co/FrZSbxMrpL pic.twitter.com/dPIzXYZaqm
— Pumpcat 🐱📈 (@pumpc4t) December 2, 2022
For other analyses, Cold Blood, the idea of a Santa Rally is not completely ruled out whether the Fed’s announcements and actions move towards risky assets. In this specific case, Bitcoin could take off from the disappointing performance of the USDX and the potential ceiling of the S&P 500.
A $19,500 price cap on Bitcoin is worth considering
For Capital RektBitcoin cap set for $19,500. He mentioned the high crypto miner exit rate that could threaten BTC’s Santa Rally.
Otherwise, the trader is still bullish for Bitcoin despite a tough November. BTC/USD saw a 16.2% decline largely due to the FTX crash. He said:
BTC lost $19,500 as support. But that did not turn into a new resistance.
nowadays, there are two possibilities for Bitcoin. The latter consolidates its position around $19,5000 or it could reach a new low which is terrifying for many investors.
As if Bitcoin fails to consolidate above $19,500, its value could fall back to $13,900. A very low level that the crypto market should be in for a long winter.
Rekt Capital Bitcoin Chart from TradingView.
Where can investors go in such a difficult environment?
In the heart of the bear market, the expectation of achieving substantial profits is low, at least in the short term. Because when we take a step back from the situation, we notice that every particular attention is related to a sector.
Pentoshi’s Twitter account with almost 650,000 followers believes that the NFTs sector and the games metaverse have a certain future. And that’s for a simple explanation. These areas have very engaged and optimistic communities for the year 2023.
He says in a Tweet:
NFTs have drawn more people to cryptos than anyone else. NFTs will have the wind in their sails along with gambling at the next bull run…”
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For Pentoshi, this sector is still in its infancy. It was clear that there were many highlights that will soon become more mature and serious games.
We’ve all seen the decline of Play-to-Earn games over the past few months.
Why did it happen?
❌ Lack of experience building games
💰 Money-driven teams with bad supporters
🧪 Assumptions, no actual research
🕹️ Wrong secrets playingThe list goes on, but change is coming.
—Pentoshi 🐧 (@Pentosh1) September 7, 2022
Note, however, that the latter is making a metaverse game. The enthusiasm surrounding the project has no doubt given him hope for NFTs and the metaverse.
Still from a broader perspective, Bitcoin is talked about with the potential crypto acceptance in Brazil as a method of payment. If BTC is badly treated right now, 2023 may be in for a nice surprise for us, whether at the level of NFTs or metaverse.
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