Why Bitcoin Price Is Likely to Gain Momentum After New Year’s
Could Bitcoin Rally After New Year’s Eve?
Last year’s holiday season wasn’t the best time for Bitcoin holders. For those who missed the memo, in November and December of 2018, the leading cryptocurrency tanked, falling off a proverbial cliff as investors capitulated, liquidating their BTC holdings in search of greener pastures. In fact, within a four week period, Bitcoin had entirely capitulated, losing half of its value faster than you could say “Satoshi Nakamoto.”
But, according to a recent analysis, the holiday season — or at least the next few days — will favor bulls.
Cryptocurrency analyst Joel recently posted the below chart, in which the historical price data of Bitcoin before, during, and after New Year’s was conveyed.
Joel’s analysis found that Bitcoin rallied by an average of 3% higher during 71.43% of the first weeks of January (January 2nd to the 7th), implying that there is a good historical likelihood that BTC could carry strength into 2020.
Of course, this is just an average, though the post-New Year’s positive directionality seems to exist, for it would line up with an analysis done by crypto exchange SFOX which found that the leading cryptocurrency performs better around the times of holidays.
What Are Other Bull Factors?
Holiday cheer isn’t the only thing that may boost Bitcoin in the coming days and weeks.
Hodlonaut, a prominent Bitcoin proponent and commentator, recently argued that the sentiment existing in the industry is the perfect place, by traditional industry standards, for Bitcoin to “start a rip your face off rally.”
The technicals seemingly corroborate this.
According to digital asset manager Charles Edwards, who has popularized the talk around Bitcoin miner capitulation over recent months, a “buy” is rapidly forming on the Hash Ribbons indicator just a few days after “recovery” was signaled.
This is notable. Previous “buy” signals by the Hash Ribbons came shortly after macro bottoms, followed by fully-fledged bullish reversals. Case in point, the Hash Ribbons printed a “buy” in the middle of January of this year.
On the fundamental side of things, Willy Woo, partner at Adaptive Capital, recently asserted that BTC is in the midst of a “re-accumulation” phase of bull markets that always proceeds the blow-off top rally, one that brings Bitcoin an order of magnitude or two higher than where it started.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.