The trading of traditional shares closes later today, but the crypto market will continue trading over the weekend as the first week of December 2022 rolls around.
Notably, the volatility in the crypto market remains significantly higher than in the stock market. Nonetheless, the urgent and persistent question – to both swing traders and HODLers – is how far the Christmas frenzy will push the Bitcoin price and in which direction.
High-impact events, including the United States unemployment rate and the Canadian employment change, have occasioned the week. In addition to this, Wednesday’s speech by United States Federal Reserve chairman, Jerome Powell, revealed that interest rates would hike in December.
As such, market strategists forecast the crypto market will generally be in the green during this festive period, which is also substantiated by historical data from over the year; this leads to the possibility of the year closing around the $25k mark for the lead cryptocurrency.
Even this week, Bitcoin was able to accomplish $17k since hitting lows of about $15,599.
Bitcoin Price Targets for this Christmas
Bitcoin and the entire crypto market significantly felt the impact of FTX and Alameda’s implosion. Although former FTX CEO Sam Bankman-Fried claims the US entity is solvent, about 1 million global crypto customers have learned the hard way – not your keys, not your coins.
The Bitcoin market is on the precipice of welcoming heightened daily volatility this December following the recent breakout on the shorter timeframes. Prior to the FTX fallout, Bitcoin price strongly held the $18k support level. As such, market strategists think Bitcoin price may fall before rebounding in the coming weeks.
Should Bitcoin price capitulate below $10k, analysts suggest it may take longer for the crypto market to recover than prior bear markets. Moreover, according to a famous crypto analyst, Jason Pizzino, it is not prudent to invest in the altcoins market before the Bitcoin market shows strength.
As a result, the cryptocurrency community is closely watching the Bitcoin price action, mainly due to its worldwide recognition and popularity.
According to CryptoQuant’s top analyst, the current crypto bear market can be compared to the ‘dot com bubble’, which saw performing tech companies thrive in the subsequent decade. As such, the analyst says Bitcoin will survive due to its dominance and potential to be adopted by worldwide regulators.
Come the first quarter of 2023, market strategists forecast more crypto volatility as a continuation of the Christmas frenzy based on historical cycles.