Recipe for crypto Santa Claus rally

• Bitcoin addresses with 100 to 10,000 BTC have collected $726 million in BTC in the past nine days.
• Stablecoins USDT, BUSD and DAI are accumulating, signaling that a Santa Claus meeting is around the corner.
• $1.4 billion worth of Bitcoin exited exchanges on Wednesday, reducing selling pressure on the asset.

Bitcoin and cryptocurrencies enjoyed a resurgence in prices, with both BTC and Ethereum jumping to their highest levels since the collapse of the FTX exchange on Tuesday. Experts at Santiment noted euphoria in the crypto market as Bitcoin and stablecoin outflows increased and whales scooped up assets from exchanges.

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Bitcoin and stablecoin whales accumulated assets in preparation for a price rally

Bitcoin network’s big wallet investors continued massive accumulation of BTC. Exchanges witnessed an outflow of $1.4 billion of Bitcoin on Wednesday, according to data from Bitcoin Magazine.

Whales scooped up large amounts of stablecoins, Tether (USDT), Binance USD (BUSD) and DAI in anticipation of an upcoming Bitcoin price rally. Accumulation of whales is considered bullish for the asset.

Bitcoin addresses with between 100 and 10,000 BTC added a value of $726 million to their portfolio in less than ten days. Data from crypto intelligence tracker Santiment reveals that USDT, BUSD and DAI holdings of whales with between $100,000 and $10,000,000 in stablecoins are increasing rapidly.

Accumulation of BTC, USDT, BUSD and DAI by whales

Traders’ enthusiasm needs to stay high and fear low, to push Bitcoin’s price higher, according to Santiment’s recent tweet.

Bitcoin Santa Claus Rally Around the Corner?

December is the peak of the holiday season which gave rise to the term “Santa Claus” rally. It is a phenomenon where stock markets and cryptocurrencies crash in the days leading up to Christmas. Investors believe December is a lucky month and cryptocurrencies could rise as enthusiasm spreads among traders.

BTC/USD exchange rate chart

Bitcoin price is currently in a short-term uptrend that started on November 22 (see 4-hour chart above). In the first ten days of December, Bitcoin price respected support from the 50-day exponential moving average (50-day EMA) and resistance from the 200-day EMA. On December 13, however, the price broke above both MAs and rose. The two moving averages now meet at $17,327, an important support level for the Bitcoin price. If the 50 EMA closes above the 200 EMA it will also signal a bullish Golden Cross continuation pattern for the asset.

However, BTC price’s overall trend on the daily and weekly charts remains bearish, hinting at the potential threat of more downside. Should the Bitcoin price break and close below the bottom of the 4-hour chart channel, at approximately $17,200, it suggests that the short-term trend may change and fall back in line with the longer-term downtrend. A further break below the December 12 low of $16,880 would seal the deal for bears and suggest a continuation lower. A possible downside target after that could be the 61.8% Fibonnaci extension of the height of the channel, to $16,475, or for those with a risk appetite, the 100% extrapolation to $16,065.