Bitcoin and Ethereum rebound in December gets underway... Growing expectations for a year-end 'Santa Rally'

Source: TokenPost Original Title: Bitcoin($BTC) and Ethereum($ETH@ Begin December Rebound—Rising Expectations for Year-End ‘Santa Rally’ Original Link: Bitcoin and Ethereum, which plunged in November, are showing signs of a rebound in December thanks to improved technical indicators and bargain buying. Amid expectations for a year-end ‘Santa Rally,’ psychological support levels are emerging as key variables.

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With growing interest in which asset—Bitcoin)BTC( or Ethereum)ETH(—will show stronger performance in December, both have started to rebound after experiencing significant corrections throughout November. The fact that the two leading cryptocurrencies dropped more than 30% each this quarter shows the strong selling pressure in the market.

In October, Bitcoin briefly hit a historic high of $125,000)about 183.69 million KRW(, but in just a month, it fell below $85,000)about 124.9 million KRW(, a drop of 32%. Ethereum followed a similar pattern, dropping from $4,500)about 6.61 million KRW( in early October to $2,750)about 4.04 million KRW( at the end of November—a sharp 39% decline.

However, as December began, both assets gradually started to recover. As of December 8, Bitcoin had rebounded to $92,000)about 135.18 million KRW(, and Ethereum to $3,150)about 4.62 million KRW(. During this period, investors on Twitter engaged in playful debates about “who bought and sold last.”

This shows that even during short-term crashes, there are investors ready to buy the dip. Notably, strong buying support is reported around the psychological threshold of $100,000)about 146.95 million KRW( for Bitcoin and $3,000)about 4.41 million KRW( for Ethereum.

Technical indicators are also signaling positively. Both assets have broken through the 10, 20, 30, and 50-day moving averages and are recovering an upward trend. Trading volume has increased for both Bitcoin and Ethereum even during the downturn, indicating that long-term holders are actively participating in the market.

However, even Michael Saylor’s firm, famous for its Bitcoin advocacy, has recently reduced its Bitcoin purchases, raising concerns that a short-term top may be forming. In previous cycles, BTC and ETH have seen corrections of up to 60–90%, so further declines can’t be ruled out.

From a long-term perspective, both coins show strong signals in comparisons of corporate and institutional holdings. As of December, Ethereum holdings were at 5.7 million ETH)about 2.6296 trillion KRW(, while Bitcoin holdings reached 4 million BTC)about 880 trillion KRW(, highlighting Bitcoin’s supremacy in absolute value.

Both networks are also making technical improvements. On December 3, Ethereum implemented a hard fork called ‘Fusaka)Fusaka(,’ improving state data processing speed. Meanwhile, Bitcoin underwent its first-ever external security audit of its core code and was found to have no major vulnerabilities.

In line with the saying “buy the rumor, sell the news,” the market responded to the Fusaka upgrade with short-term profit-taking in Ethereum. Additionally, the price and trading volume charts for Bitcoin and Ethereum are moving almost identically, suggesting that neither has a clear advantage over the other.

Ultimately, which asset delivers stronger returns in December will likely depend more on narrative and sentiment than on technicals. With expectations rising for a year-end ‘Santa Rally’ centered on Bitcoin, attention is also on how Ethereum will keep pace through its technical advancements.

Market Interpretation

Both Bitcoin and Ethereum are attempting a rebound after sharp declines in November, with technical signals and strong bargain buying evident. However, the possibility of a longer-term cycle correction should not be ignored.

Strategy Points

Despite concerns over a short-term top, the potential for a year-end rally and growing corporate holdings are positive factors. Trading strategies near psychological support levels)Bitcoin $100,000, Ethereum $3,000( may be effective.

Glossary

Fusaka Upgrade: A hard fork to improve Ethereum’s state data processing speed

Bitcoin Core Audit: Security review of BTC’s core code conducted by an external organization

Santa Rally: A seasonal phenomenon in which stock and crypto markets rise at year-end