• Don't FRET
  • Posts
  • Bitcoin on Holiday Clearance Will It Bounce Back Like January?

Bitcoin on Holiday Clearance Will It Bounce Back Like January?

Binance reserves hit a yearly low, $BTC shows pump-and-dump moves, and Berachain, BONK, and VITA updates hint at opportunities in the holiday slowdown. Patience is key in this low-volume market.

Author

Don't FRET
December 26, 2024 • Estimated Reading Time: 5 minutes

Today’s Narrative - 📉Bearish📉

Macros

  • Market volume remains low due to holiday distractions and a general lack of participation, making it a time for caution rather than aggressive moves.

  • Bitcoin reserves on Binance have reached their lowest level since January, a similar pattern that preceded a 90% $BTC rally earlier this year. This signals potential accumulation phases but doesn’t guarantee immediate upside.

  • Russia’s finance minister supports Bitcoin’s use in foreign trade, showing growing acceptance of crypto in international commerce, a narrative that could have long-term bullish implications.

  • Choppy markets dominate as traders stay on holiday sidelines, creating conditions ripe for manipulation and pump-and-dump behavior. It’s best to avoid getting caught up in speculative trades until market confirmation emerges.

Crpytos

  • Bitcoin’s price action shows pump-and-dump behavior, moving from $94k to $99k on Christmas Eve and retracing within hours due to low volume. $BTC must hold $95k to avoid further bearish sentiment.

  • Berachain’s Vault launch allows users to earn rewards like Berachain tokens by depositing BTC and ETH, opening up opportunities for accumulation across multiple projects.

  • Movement Labs clarified MOVE token mechanics, noted to investors that tokens are locked and cannot be staked, which may limit immediate liquidity concerns.

  • BONK’s upcoming BURNmas update aims to burn 1 trillion tokens, potentially creating supply deflation and upward price pressure if executed effectively.

  • VitaDAO proposes distributing 6.9M BIO tokens to VITA and IPT holders, adding value to current stakeholders while increasing community participation.

  • RIF and URO tokenomics updates promise airdrops of at least 5% for holders, providing an incentive for longer-term holding strategies.

  • BTC price is showing no real size or volume, signaling traders should avoid FOMO as the current price action reflects holiday-driven manipulation.

Our Stance

The market is stuck in low-volume, holiday-induced limbo, with manipulation and pump-and-dump behavior dominating price action. It’s a time for caution and patience. Traders should avoid getting chopped up in this environment, waiting for clear signals of a trend reversal or sustained momentum before taking significant positions.

Bitcoin’s low reserves on Binance are a potential bullish signal for the long term, but the immediate lack of volume and direction suggests we’re still in consolidation mode. For now, it’s best to remain on the sidelines.

Low-volume conditions are not the time to chase. However don’t be shy to add spot positions with prices currently dropping, aka post-Christmas clearance.

Subscribe to Don’t FRET
Get content like this straight into your inbox

Join the Revolution in Private Market Investing

All investments have the risk of loss. UpMarket is not associated with or endorsed by the above-listed companies. Only available to eligible accredited investors. View important disclosures at www.upmarket.co

At UpMarket, we make it possible for accredited investors to tap into high-growth private companies. With companies like xAI and Anthropic redefining what’s possible in AI, and SpaceX pushing the boundaries of space exploration, UpMarket’s platform has become a gateway for future-focused accredited investors. Join our network of 500+ investors who have placed over $175M in private opportunities since 2019.

Subscribe to Don’t FRET
Get content like this straight into your inbox

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Cryptocurrency markets are highly volatile, and you should only invest funds you can afford to lose. The views expressed here are those of the authors and do not represent the opinions of any organizations or entities we may be affiliated with. We are not liable for any financial losses incurred from investment activities based on this content.

Anything you would like to add? Feel free to comment below.

Reply

or to participate.