The price of Bitcoin has reached another new historic record, but is struggling to exceed $30,000.
Bitcoin price faces last hurdle before $30,000
The price of Bitcoin (BTC) reached a new historic high above $ 29,400 at major exchanges on January 1. In other words, BTC is only 2% away from reaching the psychological resistance level of $30,000.
The drop of $30,000 could renew market confidence with the last remaining technical hurdle just below this level.
GBTC/USDT 4-Hour (Binance) Chart. Source: TradingView.com
Therefore, in the short term, sellers would seek to defend the $30,000 resistance level with stacked sales orders. The exchange order books show large sales orders in the $29,800 to $30,000 range.
$29,800 is critical to another step of Bitcoin
The exchange Binance and Bitfinex order books show relatively large sales orders at the $29,800 to $30,000 levels. This means that sellers would try to lead a withdrawal from Bitcoin before it reaches $29,800.
A cryptomedic trader known as „Loma“ said the same way, that if Bitcoin was rejected for $30,000, it would probably fall from $29,800. He said:
„BTC either blows up the $30,000 in the next few days into the $31-33k territory or it rejects something at $29,800. Basically, what I’m saying is that if you’re selling the $30,000, there’s a good chance you’ll get run over. ”
Bitcoin futures traders have been trying to suppress the price of BTC and have been operating aggressively short for the past 24 hours.
The futures financing rate at Coinbase and other major exchanges has remained around 0.01%, despite the recent high. Sometimes it fell below 0.01%, indicating that most of the market was short or selling BTC.
However, retail investors in Bitcoin’s spot market, which refers to exchanges without derivatives and leverage, have been accumulating BTC.
On December 31, just before the New Year, the price of Bitcoin reached a new historical record. Santiment analysts said they noticed an increase in movements within the network, which may indicate retail accumulation.
Since Coinbase saw a big prize in relation to other important exchanges, such as Binance, retail investors at Coinbase probably bought Bitcoin on New Year’s Eve. The analysts said:
„When the # Bitcoin markets opened in 2021 for the first time, about 30 minutes ago (UTC), prices jumped to $29,460, as $ BTC made another AllTimeHigh. Active addresses are increasing in the last few hours to support this momentum. ”
In the short term, Bitcoin will likely see a battle between futures short sellers and retail investors in the spot market as the price approaches $30,000.
Bitcoin reaches new historic highs on January 1st.
What happens next?
In the short term, the key is to see Bitcoin’s behavior in the $29,800 range. There is a great possibility that it will go back without rising to this level, which could lead to a reasonable size correction.
If the BTC goes above $29,800 without much difficulty, a wider rise above $30,000 will become probable in the near future.
As the Cointelegraph reported earlier this week, Bitcoin will seek to extend its gains in the first quarter of 2021 by several metrics.