Bitcoin Price Surge: A Potential “Santa Rally” on the Horizon
Bitcoin (BTC) has experienced a significant surge in its price, reaching $90,000 during early trading hours in Asia on Monday. This increase has sparked hopes of a “Santa Rally,” with some analysts predicting targets as high as $120,000. The recent upswing has resulted in a 6.5% gain from the recent lows, with short liquidations dominating the market and potentially fueling further bullish momentum.
Data from Cointelegraph Markets Pro and TradingView shows that the BTC/USD pair hit an intraday high of $89,850, up 6.5% from the local low of $84,400. Analyst AlphaBTC noted that Bitcoin “is aiming for a Santa rally,” with an accompanying chart suggesting a potential rise towards the year’s open at $93,300 and later towards the $98,000 and $100,000 resistance zones.
Technical Analysis and Market Sentiment
Fellow analyst Captain Faibik pointed out that Bitcoin is looking to break out of a bullish megaphone pattern after consolidating in a broad range of $82,000 to $95,000 since November 22. The measured target of the Megafon pattern is $120,000, representing a 34% increase from the current price. However, not all analysts are convinced of a “Santa rally,” with some warning of a potential decline to $70,000.
Ardi has tracked the “Santa rally” window (December 24-January 2) over the past five years and noted that Bitcoin has seen “declining returns and actual selling pressure,” with a +34.5% surge in 2020 being an outlier. The analyst warned that the post-halving year 2025 stands in the same position as 2021, when BTC returned -7.9% during that period.
Derivatives and Market Dynamics
CryptoQuant analyst Axel Adler Jr. noted that Bitcoin’s current market configuration offers tactical upside potential, reinforced by a favorable derivatives structure in the futures market. The analyst stated that the Regime Score is at 16.3%, putting the BTC/USD pair in the upper neutral zone, a historically bullish signal.
The Long/Short Liquidation Dominance Oscillator has fallen to -11%, signaling an increase in forced short position closes, while its 30-day moving average remains positive at 10%. This divergence suggests a recent increase in forced short position closures, which may lead to upward pressure on the price.
Key Support Levels and Market Outlook
Trader and analyst Daan Crypto Trades emphasized that $84,000 “remains a key area for bulls to defend on the upper time frame.” Glassnode’s cost base distribution heatmap highlights the importance of this layer, with immediate support lying at $84,000 to $85,600, where investors acquired around 976,000 BTC.
Holding above this level is an important prerequisite for getting back towards $100,000 or higher. As Cointelegraph reported, the bears want to break the support at $84,000 and are eyeing the next target at $80,000.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making their decision. For more information, visit https://cointelegraph.com/news/bitcoin-santa-rally-targets-120k-key-btc-metric-flips-bullish
