Last year’s Christmas build-up was one of bitcoin’s most bullish times, with the asset gaining 50% of its value at the end of December.
With the uncertainties around the most recent Fed meeting over now, the question arises if BTC can do it again.
The Christmas Rally 2020
2020 has been a crazy year in every way, including the cryptocurrency space. Bitcoin entered it with high hopes, as its third halving, which took place in May, was set to initiate another massive bull run as it did in 2012 and 2016.
However, the COVID-19 pandemic came and turned everything upside down. BTC was not exempt, and the infamous volatility struck hard in March when the asset plummeted by more than 50% in a day to below $4,000.
However, the situation began to normalize in the following months. The aforementioned halving came about and BTC did indeed start a bull run in late 2020 as leading institutions and investors began to partner with it.
As such, the asset neared its ATH at the time of around $20,000 in mid-December. This is when the moment the entire crypto community waited for three years finally came. Bitcoin broke that coveted line and went into uncharted territory.
The bullish sentiment continued over the next two weeks. BTC ultimately added 50% in value at the end of the year and finished it at around $ 29,000 – the highest on record.
Could BTC Do it Again?
This year started on a high note, with bitcoin charting new ATHs frequently. It peaked at $65,000 in April when everything seemed bullish but dumped in value in the following months when China reiterated its ban on crypto and ousted miners.
Upward price movements resumed in the second half of the year (again), and bitcoin managed to break the April ATH first in October, then in November. The current high is $ 69,000.
In the following month or so, BTC retraced once more, sitting around 30% away from that peak. Most crypto insiders, which were highly bullish about the year’s end, attributed the recent decline to uncertainties coming from the US and the infamous FOMC meeting.
Now that it’s over, BTC could be ready for another head start, at least according to CryptoQuant analyst – VentureFounder. He believes the technicalities are still intact, with a “tiny” bullish RSI divergence forming. Therefore, he noted that the general momentum could change quickly and bitcoin could replicate the race of 2020.
If BTC indeed skyrockets by 50% from its current price tag, it will break the November ATH by going above $70,000.
