The year 2021 is off to a good start for Bitcoin (BTC), which has just crossed $30,000. After setting a new all-time high above $20,000, Bitcoin’s bullish push continues.
The new year begins on the hats of wheels for the price of Bitcoin. The cryptocurrency queen has just surpassed $33,000 as at today January 2, a real performance that comes just two weeks after she broke her previous all-time high of $20,000.
Volumes on platforms are reaching new heights, institutions continue to pour in massively, confidence in Bitcoin has never been so high, all of these factors which have pushed Bitcoin towards this colossal value.
From a fundamental point of view, Bitcoin has never been in such conditions. Almost everything has been in its favor for several months, which has generated a constant increase in demand, and therefore in price.
The last days of 2020 were particularly prolific for Bitcoin, where it closed each new day with a rise in the order of $500 to $1,000. Gradually, Bitcoin has grappled the levels, until reaching the symbolic bar of 30,000 dollars.
In just 17 days, Bitcoin therefore shows a performance of more than 50% on the rise , from 20,000 to 30,000 dollars. Its total capitalization even reaches 560 billion dollars:
Bitcoin Rises Increases Doubts
Either way, this rapid rise in Bitcoin is not very healthy. Many analysts point out that a consolidation of the price of Bitcoin is necessary for the uptrend to continue, and for the subsequent correction not to be too severe.
This move above $30,000 is therefore accompanied by uncertainty. Is Bitcoin poised to retreat in a brutal way? This bullish situation is particularly extreme, which requires us to remain cautious.
The dominance of the cryptocurrency queen is peaking and approaching the resistance of 73%. At the time of writing, it is around 72%, a metric that must be kept in mind and which could trigger a single pullback in Bitcoin.
The current rise in Bitcoin is excessive. We are indeed in a bull-run , but the price of an asset never goes up in a straight line indefinitely. The greater the impulse phase, the more the correction phase can be in return.
Since Bitcoin has been in the price discovery phase since it crossed above $20,000, no tangible support can be used as a reference in the event of a correction. The closest support is $20,000, Bitcoin’s former all time high.