Bitcoin prices have had an intriguing few days, plummeting over the weekend and then regaining control of the $50,000 mark. Considering these recent moves, as well as the fact that 2021 is drawing to a close, numerous individuals have speculated on whether the world’s most renowned digital currency may undergo a Santa Claus rally.
A Santa Claus rally is a continuous surge in the cryptomarket that happens during the final week of December and the first couple of days in January. The origins of a Santa Claus rally may be attributed to a variety of factors, including tax concerns, a general sense of optimism and pleasure, and the investment of Christmas bonuses.
Another argument is that some extremely big institutional investors, many of whom are have more resources but are pessimistic, go on vacation at this period, leaving the market to individual investors, who are more positive.
For the first time since April, the weekly MACD of Bitcoin is exhibiting a sell signal. Moving average convergence divergence (MACD) is a technical indicator that use several moving averages to provide proposed “buy” and “sell” signals. The MACD signal may diminish the likelihood of Bitcoin experiencing its merry Christmas-time rally. This is an extremely similar MACD signal that was seen in the days leading up to the May drop. This might pose a threat to Bitcoin before the end of the year. It is critical to recognise that we are in the midst of a protracted bull market, with a bear market on the horizon.
There has been conjecture of a positive rise in Bitcoin reaching $90k shortly, but it seems that Bitcoin will eventually hit at least $100,000 in the imminent future. The magnitude of the latest sell-off, as well as the MACD display, indicate that the Bitcoin correction looks to be mostly the product of a single whale selling and initiating a liquidation cascade in the leverage market.
If the price clearly surpasses the $53,000 barrier, Bitcoin might continue to increase until the end of the holiday season and beyond. A new all-time high seems unlikely before the end of the year, but it would not be shocking to see Bitcoin revert to its former range of $53,000 to $60,000.
HUH Token
A newly released token called “HUH Token” or HUH, launched Monday the 8th. It has had an impressive start. Within 48 hours, it has increased by nearly 1000% that is 10x for any early investor. The token is showing no signs of slowing down. The premise behind the cryptocurrency seems to rely on a referral system built into its smart contract. If you refer someone new, you can get ten percent of their initial purchase of HUH Tokens as a different cryptocurrency. This onboarding process seems to be very successful and attractive to retail investors.
Another interesting part of this cryptocurrency is mentioned in the end of it’s whitepaper, in the FAQ section.
If Elon Musk does respond to this charitable attempt at attention, it could make this token go viral. If that attention is positive is another story altogether. Perhaps Bitcoins festive demonstration is hard to predict but HUH Tokens Santa Claus rally seems to be in full swing.
Please be mindful that this article is not financial advice and is only intended for educational and entertainment purposes. Do your own thorough research in any financial endeavour you decide to take.
