Analyst: Bitcoin's Santa rally has weakened, watch for selling pressure

The traditional Santa Claus rally for Bitcoin has shown a trend of diminishing returns and dominant selling pressure over the past five years, according to on-chain analyst Ardi, Cointelegraph reported. The analyst noted that while Bitcoin surged 34.5% during the 2020 rally, year-end returns have progressively weakened in recent years when excluding that outlier. Ardi added that BTC is currently in a similar post-halving phase to 2021, a year when it recorded a 7.9% decline during the same period. He observed that since the beginning of December, Bitcoin whales have been incrementally selling their holdings to capitalize on buying from retail investors. Consequently, the analyst warned that investors should be cautious of further short-term selling pressure.