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Bitcoin's price stabilized around $98,000 on December 25, following a dip to approximately $92,000 before Christmas.

The cryptocurrency saw a recovery with a daily gain of $4,000 on the 25th, signaling a potential "Santa rally."

Technical analysis on lower timeframes by trader Skew suggested a bullish outlook.

Skew noted that Bitcoin was retesting a systematic trend line that had previously guided the price from $68,000 to $108,000. He highlighted a "clean" bullish divergence in the relative strength index (RSI) on the 4-hour chart, indicating that attempts to push Bitcoin's price lower were unsuccessful, describing it as a "failed auction."

Keith Alan of Material Indicators pointed out that Bitcoin's price was currently trading between two significant simple moving averages (SMAs) on the daily chart: the 21-day SMA at around $99,600 and the 50-day SMA at approximately $94,650.

Bitcoin had maintained the 21-day SMA as support since mid-October until recently when it briefly fell below the 50-day SMA. Alan questioned which trend line would give way first.

Despite the price recovery, the market was influenced by significant outflows from U.S. spot Bitcoin ETFs, which reached $1.5 billion over four days, with $338.4 million specifically recorded on Christmas Eve.

This data was sourced from entities like Farside Investors. The closure of traditional markets on this day was seen as a respite from recent selling pressures.

Onchain analytics from CryptoQuant indicated a positive shift in investor behavior, with an increase in Bitcoin exposure among short-term holders (STHs).

Additionally, there was notable demand from South Korea, with the "Kimchi Premium" — the price difference between South Korean exchanges and others — reaching a high of 5.12, reflecting strong local demand for Bitcoin.

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