On December 25, Bit (BTC) reached a price level around 98,000 USD as traders celebrated the timely Christmas boom.
1-hour Chart BTC/USD. Source: BitcoinNews/TradingView
Bit price aims at resistance levels
Data from BitcoinNews and TradingView shows that Bit's price volatility has cooled down as the holiday season began after a daily increase of 4,000 USD.
When analyzing the short timeframes, renowned trader Skew appears cautiously optimistic about the bullish trend.
"From the breakout, the price has retested the system trend that drove the price from 68K USD -> 108K USD," he began in a post on X.
Skew revealed that he found a divergence in the relative strength index (RSI) with a clear bullish trend on the 4-hour chart and described attempts to push the BTC/USD price lower as a "failed auction."
"Fundamentals look quite good, will be watching this," the post summarized.
4-hour Chart BTC/USDT. Source: Skew/X
Keith Alan, co-founder of the trading resource Material Indicators, pointed out that the price is currently stuck between two daily simple moving averages (SMA).
They are defined by the 21-day and 50-day resistance levels around 99,600 USD and 94,650 USD. Before dropping below this level this week, Bit had maintained the 21-day SMA as support since mid-October, with the 50-day support still holding.
"Which one do you think will break first?" Alan asked.
1-day Chart BTC/USD with 21, 50SMA. Source: BitcoinNews/TradingView
A looming shadow over the recovery is the continuous outflow of funds from the United States Tether (USDT) exchange-traded funds (ETFs).
As BitcoinNews reported, these flows have reached record levels this week, with a total of 1.5 Billion USDT withdrawn from ETF products in just four days.
Data from sources including UK investment firm Farside Investors shows the total outflow on Christmas Eve reached 338.4 Million USDT.
Net flows of Bit ETFs in the US (screenshot). Source: Farside Investors
"The traditional US market is closed today, so $BTC is getting a break from the recent selling," renowned crypto investor and analyst Satoshi Stacker explained.
CryptoQuant: South Korean Bit buyers are back
The Blockchain data analytics platform CryptoQuant is also optimistic about the outlook, reporting an increase in Bit exposure among short-term investors this week.
In one of his Quicktake blog posts on December 24, contributor Joo Hyun Ryu noted that demand from South Korea has increased significantly.
An accompanying chart shows what CryptoQuant calls the Kimchi Premium - the aggregate price difference between South Korean and other exchanges.
"The strong correction in the market seems to be attracting new investors, evidenced by a 3 percentage point increase in the share of short-term investors under three months in just one week," he wrote.
"Notably, there has been a significant increase in the Kimchi Premium, reaching a local high of 5.12, indicating strong demand for Bit among South Korean investors."
Bit Korea Premium Index. Source: CryptoQuant
