The bitcoin (BTC) price has been remarkably stable in recent weeks. After the implosion of FTX, the price fell to around $15,650 and then started a small climb again. We are now dangling around the price of $17,000 and calm seems to be slowly returning to the market. For now then, because volatility may return today.
Will Bitcoin Have Another Christmas Rally This Year?
The big question is whether we can expect another ‘Christmas rally’ this year, but this also failed to materialize last year. If we are to believe some analysts, the end of the year could be painful for bitcoin and the rest of the crypto market. For the first time in history, the annual chart of bitcoin makes a formation that does not bode well in technical analysis.
It’s a so-called bearish engulfing pattern that can only stop bitcoin if it experiences another increase of more than 40 percent in the next three weeks. However, that seems unlikely.
But given the immaturity of bitcoin as an asset, it is difficult to say things about the future based on the annual chart. After all, we have only had a few years in which enough bitcoin was traded to be able to do something with technical analysis on the larger time frames.
What is relevant is the fact that on a weekly scale, bitcoin has been below the highs of the previous cycle for a long period of time. This has never happened before in the history of bitcoin and it seems to have everything to do with the current macroeconomic conditions.
Bitcoin is a leading indicator
According to Bloomberg analyst Mike McGlone, 2022 has become the year for bitcoin to establish itself as a leading indicator for the rest of the financial market. What is often striking is that bitcoin is the first to start a nosedive and only then do the rest of the financial markets follow. One explanation for this could be that the bitcoin market is always open and that it is one of the most liquid markets in the world.
What Stops Bitcoin From Rising vs. Gold? The world’s most fluid 24/7 trading vehicle, #Bitcoinhas gained status in 2022 as a leading indicator and declined in a risk-off environment, but the crypto may be transitioning toward a high-beta version of #gold and US Treasury #bonds pic.twitter.com/glmEdBtRcs
— Mike McGlone (@mikemcglone11) December 7, 2022