The first and largest cryptocurrency, Bitcoin (BTC) price surged to a new all-time high at $29,321, rallying from the prior day low of $27,311. Ethereum (ETH) and Bitcoin Cash are also on the move, posting gains of more than 20% weekly. Ethereum for instance has traded seven consecutive days in green.
Presently, the Bitcoin price has risen 302% over the year and significantly outperforms the gold market and equities markets such as the S&P 500. BTC is up 168% since September, which is the second-best year-end since 2017 when it was up 210%.
As Bitcoin approaches $30K, several reasons are supporting the $30K Bitcoin price scenario. First, the outgoing U.S. President Donald Trump finally endorsed the long-awaited stimulus bill worth $900 billion. Secondly, the latest addition to BTC institutional investors is Greenpro Capital, a business intelligence firm based in Hong Kong. The company recently touted Bitcoin as “a reliable future store of value,” while simultaneously stating its intention to raise $100 million in bids to buy Bitcoin.
A well-known analyst and trader, Alex Krüger noted recently that traders are looking at two Bitcoin price levels which are $30K and $36K.
BTC/USD Daily ChartBitcoin presently is trading down at $28,672 while Ethereum and Bitcoin Cash traded at highs of $755 and $361 before retreating.
Given that the price of Bitcoin has risen 64.9% since the beginning of December, reaching $30,000 could signal a possible pullback, but volume will ultimately be the main determinant of where the price might go.
An analyst stated that barring yet another robust surge in buying, the presence of Sell walls suggests that a rise to $30,000 could trigger a strong sell-off and force the BTC price to revisit key underlying support levels at $28,000 and $27,300.
In/Out of the Money Around Price (IOMAP) data confirms that the BTC price sits on top of a strong support area. Over 220,000 addresses purchased 190,000 BTC from $27,000 to $26,700.
Nunya Bizniz, a popular Twitter trader, notes that the price of Bitcoin above $30,000 is starting to look a bit overextended. Other traders have also enunciated on the possibility of Bitcoin topping out at $29,000 or $30,000 in this present rally. Another analyst believes that the level where this rally could top in the near to medium term may be around $29,000 based on Bitcoin’s relative strength index (RSI).
A pseudonymous trader “Byzantine General” said that he foresees Bitcoin topping out at $30,000. He noted that $30,000 is the ‘golden ratio extension’ and also has sell orders on Coinbase and Bitfinex. On the other hand, many retail traders expect the Bitcoin price to surge above $30,000 after breaking the psychological barrier.
For the second-largest crypto asset, Ethereum (ETH), a break past the $750 resistance is a determinant for its price. Above this level, ETH could surge to $1000 and also retest its all-time high later in 2021.
For Bitcoin Cash, a break past the $360 resistance level is paramount to the 6th largest asset seeing a price jump to $500. Kim Dotcom, an internet entrepreneur, and digital rights activist earlier predicted that the price of Bitcoin Cash (BCH) will rise by 867% in 2021, reaching over $3,000.
Image Credit: IOMAP, Shutterstock
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