Can Bitcoin Price Beat Its 2024 Christmas High of $94,000 This Festival Season?

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Bitcoin is struggling to regain momentum this Christmas, trading below the $90,000 mark despite the festive mood in the market. There are hopes for a holiday rally amid the bearish price action.

At the time of writing, Bitcoin closed near $86,935, slightly lower after failing to hold recent gains. Thin holiday trading volumes, ETF outflows, and a large options expiry have all added pressure on the world’s largest cryptocurrency.

How Bitcoin Performed at Christmas in Recent Years

Bitcoin’s Christmas performance has varied sharply over the past three years:

• 2023: $43,665
  
• 2024: $94,120
  

Last year’s Christmas rally to above $94,000 set a high bar. This year, Bitcoin is well below that level, raising questions about whether another festive breakout is possible.

Why Bitcoin Is Stuck Below $90,000

Bitcoin has been consolidating in a tight range between $85,000 and $90,000 throughout December. Analysts say low liquidity during the holidays has reduced strong price moves in either direction.

ETF-related selling and a major options expiry have also limited upside momentum. However, from a technical perspective, signals are mixed.

On the weekly chart, Bitcoin is still showing signs of a broader correction. A bearish divergence remains active, showing weakness could continue unless the trend changes.

However, shorter timeframes tell a slightly more positive story. On the three-day chart, a small bullish divergence has formed. This often means a short-term bounce or sideways movement rather than a strong rally.

Bitcoin continues to bounce between clear levels:

• Support: $85,000 to $86,000
  
• Resistance: $92,000 to $94,000
  

The $90,000 level has now turned into strong resistance, with multiple rejections over the past week.

Can Bitcoin Rally During Christmas?

Bitcoin looks oversold in the short term and could attempt a move back toward $90,000 to $91,000, where liquidity is building. If buying pressure increases, a brief Christmas bounce is possible.

However, failure to hold current support could send Bitcoin down toward $82,000, especially if broader market sentiment weakens.