Bitcoin coils between key trend lines as $98K boosts ‘Kimchi premium’

As an analyst with over two decades of experience in the financial markets, I’ve learned to read between the lines and spot trends that may not be immediately apparent. The recent Bitcoin (BTC) rally to $98,000 on Christmas Day was nothing short of spectacular, and it seems we are now at a crucial juncture.

On December 25th, the price of Bitcoin (BTC) approached approximately $98,000, delighting traders who were partaking in a festive and opportune “Santa rally.

BTC price lines up trend-line attacks

Information from CryptoMoon Markets Pro and TradingView indicated that Bitcoin’s price fluctuations were lessening as the holidays approached, following a daily increase of over $4,000.

As a researcher, I find myself observing the market dynamics closely, and from my perspective, even on the short timeframes, trader Skew maintains a cautiously optimistic stance, suggesting that the current scenario may potentially favor the bulls.

In the current situation, we’ve seen the price return to the consistent pattern that propelled it from $68K to $108K,” he stated in a recent posting on X.

In simpler terms, Skew pointed out an unusual situation in the 4-hour Bitcoin (BTC) chart where a “clean” bullish relative strength index (RSI) divergence occurred, suggesting that efforts to push down the BTC/USD pair were unsuccessful and could be considered as a “failed attempt at auctioning.

“Underlying momentum is pretty good, will be keeping an eye on this,” the post summarized.

According to Keith Alan, the co-founder of trading resource Material Indicators, the current price is currently sandwiched between two daily moving averages (SMAs).

Previously, the Bitcoin price approached approximately $99,600 and $94,650 levels which were represented by the 21-day and 50-day trend lines respectively. Before experiencing a drop this week, Bitcoin had maintained the 21-day Simple Moving Average (SMA) as a support since mid-October, with the 50-day SMA continuing to serve as additional reinforcement.

“Which one do you think breaks first?” Alan queried.

As a crypto investor, I’ve noticed a lingering concern hovering over the market recovery – persistent withdrawals from U.S.-based Bitcoin spot ETFs.

According to a report by CryptoMoon, the value of ETF products reached new highs this week, resulting in a significant net withdrawal of approximately $1.5 billion over a span of four days.

According to various sources, such as the UK investment firm Farside Investors, the total amount of money withdrawn on Christmas Eve was approximately $338.4 million.

Since traditional US markets are shut today, Bitcoin ($BTC) has a chance to pause from its recent selling spree, as suggested by well-known cryptocurrency investor and expert, Satoshi Stacker.

CryptoQuant: Korea’s Bitcoin buyers are back

The onchain analytics platform, CryptoQuant, shared optimistic views, noting a rise in Bitcoin investments by short-term, speculative traders (STHs) amid this recent market downturn.

One of the Quicktake blog posts published on Dec. 24 by contributor Joo Hyun Ryu mentioned a significant rise in requests, specifically originating from South Korea.

A chart was included that demonstrated the Korea (or Kimchi) Premium, a term coined by CryptoQuant to describe the overall price gap between South Korean exchanges and those located elsewhere.

“This sharp correction in the market, however, appears to be attracting new investors, as evidenced by a 3 percentage point increase in the share of short-term holders (STH) under three months within just one week,” he wrote. 

“Notably, there has been a remarkable surge in the Korean premium, which has reached a local high of 5.12, indicating a strong demand for Bitcoin among South Korean investors.”

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2024-12-25 12:48