Has the Santa Rally Arrived? Bitcoin Cracks Above $50K As Cryptos Turn Bullish

The cryptocurrency market has awakened from its stagnation mood and managed to break upside, with major coins such as Bitcoin (BTC) rallying over 4% and Ether (ETH) taking bids to rise over 3% across the board.

The world’s largest crypto by market capitalization pierced over the $50,000 handle, and now it targets the 200-period simple moving average at the H4 chart around $52,000, where a dynamic resistance lies.

Challenging Critical Levels After Sudden Rallies

Ether is now challenging such an SMA at the same timeframe around $4,100, targeting the $4,200 psychological area.

Other altcoins are following the lead, such as Dogecoin (DOGE), which had a slight rise to consolidate around $0.18, aiming to consolidate above the $0.19 level where it coincides with the 200-period SMA.

Solana (SOL) is another crypto that had a strong rise in the last hour of over 6% to test the 200 SMA around the $191 level after gathering strength around the 50 SMA. Finally, Cardano (ADA), which is in the sixth place of CoinMarketCap’s ranking, rallied over $7% to stand at around $1.45.

Santa Rally is Coming

From a fundamental perspective, no major catalyst triggered the sudden spike across the sphere. However, it should be noted that as the Christmas and New Year Eve holidays loom, traders had a bullish’s shift in their mood – the so-called “Santa Rally.”

That said, it’s not strange to see further upside in the crypto markets, in the same way, that it often happens during this season in the traditional markets like forex and stocks.

Also, altcoins like Aave (AAVE), Compound (COMP), and Uniswap (UNI) followed the bullish sentiment across the board, even rallying double-digit numbers on a daily basis.

Moreover, Binance Coin (BNB) surged over 2% in a single hour following a dull session around the 50-period SMA at the H4 chart, and now it’s poised to break above the $550 level. If that happens, doors will open to test the $570 zone.