Bitcoin and Ethereum are rising in Christmas euphoria

Bitcoin chart analysis

The price of Bitcoin yesterday jumped from the previous consolidation and climbed to $ 51,500. We are now consolidating close to the MA200 moving average, and we need a break above to move on to the bullish side. Our next target is $ 54,000, where we expect the next resistance and potential obstacle to the bullish impulse towards new higher targets.

Bullish scenario:

• We need to continue this positive consolidation above the MA200 moving average.
• Our first next resistance is the $ 54,000 zone.
• A break above this zone can boost our bullish optimism and push the price towards the next resistance zone of $ 58000-60000.

Bearish scenario:

• We need a new negative consolidation and a price withdrawal of up to $ 50,000.
• In that zone, our additional support is in the MA20 moving average.
• If bearish pressure increases, Bitcoin could fall to the next support zone at $ 46,000.
• A large psychological support zone awaits us at $ 40,000.

Ethereum chart analysis

Ethereum’s price jumped to $ 4155 yesterday, forming a new higher high of this growing consolidation. We are currently testing the MA200 moving average, and we need a break above to continue on the bullish side. Otherwise, if the pressure increases, we will see a new price increase to the previous support zone.

Bullish scenario:

• We need continued positive consolidation and a break above the MA200 moving average and $ 4200 level.
• The next resistance is at $ 4,250, and the next at the $ 4,500 level, the previous high of December 9th.

Bearish scenario:

• We need a new negative consolidation that results in a price drop to $ 4,000.
• We are looking for potential support in MA20 and MA50 moving averages at that level.
• In the further price increase, we descend to the lower trend line area 3800-3900 $.
• If the zone doesn’t hold up, then we move on to $ 3,700, as well as potentially testing this month’s low at $ 3,470.

Market overview

The Turkish lira is falling sharply, and President Erdogan seems determined to continue lowering interest rates despite declining values. The Turks turned to Bitcoin and the USDT to protect themselves from the harmful effects of inflation. After the pandemic, inflation became an increasingly urgent economic issue among world governments. For Turkey, the situation is even worse, and it is not surprising that the citizens of Turkey turned to cryptocurrencies as protection against inflation. As such, cryptocurrency activity in the country has risen sharply, with Bitcoin and USDT being the most widely adopted by citizens.
The Turkish lira has been falling since 2014 after President Recep Tayyip Erdogan took office. At the moment, like many other economies, including the United States, the Turkish government’s central bank has refused to downsize. These stocks, however, risk rising inflation and currency devaluation.
The case of Turkey is especially worse because, compared to the dollar, there is a great demand for the currency. It becomes even gloomier when the fact is included that the Turkish government has kept rates lower and lowered them. Low-interest rates on loans lead to an increase in loans, which means more money in circulation, with low demand, which leads to currency devaluation.
During that period, citizens adopted cryptocurrencies, especially Tether’s USDT and Bitcoin, to protect themselves from inflation. USDT is a stable currency whose value is pegged to the US dollar; it is also commonly used as an intermediary to purchase other cryptocurrencies.
The virtually unchanging bitcoin limits its supply to just 21 million units in a world where the supply of fiat currencies is a whim of political leaders, prompting many to see it as a good stock of values like gold. Many experts even this year supported digital assets in relation to gold.