Prominent trader Skew has expressed cautious optimism over the current trends amid the recent Bitcoin rally, claiming that the market appeared to favor bulls.
“So far this bounce has played out here with price retesting the systematic trend which led price from $68K -> $108K,” he wrote in a recent post on X.
He noted a “clean” bullish divergence in the Relative Strength Index (RSI) on the 4-hour chart and described failed attempts to push BTC/USD lower as a “failed auction.”
Trader Remains Cautiously Optimistic
While momentum looked strong, Skew added he would monitor developments closely.
The trader said that bullish confirmations include reclaiming the systematic trend, sustaining strength above the key Point of Control (PoC), and maintaining bullish momentum as the market remains bid.
Bitcoin surged over $98,000 on December 25, riding the wave of a timely holiday rally as price volatility cooled following $4,000 daily gains.
$BTC 4H
So far this bounce has played out here with price retesting the systematic trend which led price from $68K -> $108K
Clean RSI divergence playing out with completion of this bounce + retest of systematic trend
as well another failed auction lower
~ VAL + Market demand… pic.twitter.com/4qNZoFTCI7— Skew Δ (@52kskew) December 25, 2024
Material Indicators co-founder Keith Alan also weighed in, mentioning that Bitcoin’s price remained wedged between two critical simple moving averages (SMAs).
The 21-day SMA, around $99,600, and the 50-day SMA, near $94,650, now define the asset’s immediate range.
Alan questioned which level would break first, noting that Bitcoin had maintained support above the 21-day SMA since mid-October before briefly dipping below it this week.
However, not all metrics were bullish.
U.S. spot Bitcoin exchange-traded funds (ETFs) experienced record outflows, with $1.5 billion withdrawn over four days, including $338.4 million on Christmas Eve, according to UK-based Farside Investors.
Crypto investor Satoshi Stacker pointed out that Bitcoin markets would get temporary relief from selling pressure as U.S. traditional finance markets closed for the holiday.
“US tradfi markets are closed today so $BTC gets a break from the recent selling,” he said.
US tradfi markets are closed today so $BTC gets a break from the recent selling.
Over the past 4 trading days bitcoin ETFs have seen net outflows of -$1.5B. pic.twitter.com/rMhvN46QQn— Satoshi Stacker (@StackerSatoshi) December 25, 2024
South Korean Traders Are Buying Bitcoin
Amid this backdrop, on-chain analytics platform CryptoQuant provided a silver lining.
It reported increased Bitcoin exposure among speculative short-term holders during the recent market dip, particularly driven by demand in South Korea.
Contributor Joo Hyun Ryu noted that the “Kimchi Premium,” which measures the price gap between South Korean exchanges and others, reached a local high of 5.12, signaling robust local demand.
“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,” Ryu explained.
The rise in South Korean buying interest suggests a regional optimism about Bitcoin’s prospects, even as global markets navigate mixed signals.
As reported, South Korea’s cryptocurrency investors crossed 15 million in November.
According to figures submitted by the Bank of Korea, 15.59 million South Koreans held accounts on the nation’s top five cryptocurrency exchanges—Upbit, Bithumb, Coinone, Korbit, and GOPAX—by the end of November.
Deposits in crypto exchanges also doubled, rising from 4.7 trillion won (3.2 billion USD) in October to 8.8 trillion won (6.03 billion USD) in November, signaling heightened investor interest.
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