The price of Bitcoin (BTC) reached a new historic high above $ 29,400 on major exchanges on January 1. In other words, BTC is just 2% from reaching the $ 30,000 psychological resistance level.
Breaking $ 30,000 could renew confidence in the market with the last remaining technical hurdle just below this level.
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 key to another stage of Bitcoin
The exchange order books from Binance and Bitfinex show relatively large sales orders of $ 29,800 to $ 30,000. This means that sellers would try to lead a Bitcoin withdrawal before it reached $ 29,800.
A pseudonym cryptocurrency broker known as “Loma” similarly said that if Bitcoin were rejected for $ 30,000, it would likely fall from $ 29,800. He said:
“BTC either blew $ 30,000 over the next few days into the $ 31-33k territory or we anticipated and rejected it for around $ 29,800. Basically, what I’m saying is, if you’re selling $ 30k, there’s a good chance of getting hit. “
Bitcoin futures traders have been trying to suppress the price of BTC and have been operating uncovered aggressively for the past 24 hours.
The rate of financing futures at Coinbase and other major exchanges remained at around 0.01%, despite the recent rise. Sometimes, it fell below 0.01%, indicating that most of the market was short or selling BTC.
This funding fee is a new year gift. $ BTC #Bitcoin pic.twitter.com/GSPCDnZuKu
– Coinalyze (@coinalyzetool) December 31, 2020
However, retail investors in the Bitcoin spot market, which refers to exchanges without derivatives and leverage, have been accumulating BTC.
On December 31, just before the New Year, Bitcoin’s price reached a new historic record. Santiment analysts said they noticed an increase in movements within the chain, which may indicate accumulation in retail.
Since Coinbase saw a big win over other major exchanges, like Binance, retail investors at Coinbase probably bought Bitcoin by entering the New Year. Analysts said:
“When the # Bitcoin markets first opened in 2021 about 30 minutes ago (UTC), prices jumped to $ 29,460, as $ BTC made yet another AllTimeHigh. Active addresses are increasing in the past few hours to support this momentum. “
In the short term, Bitcoin is likely to see a battle between futures short sellers and retail investors in the spot market as the price approaches $ 30,000.
What happens next?
In the short term, the key is to see Bitcoin’s behavior at $ 29,800. There is a strong possibility that he will retreat without going up to that level, which could lead to a decent size correction.
If the BTC exceeds $ 29,800 without much difficulty, a broader high above $ 30,000 will become likely in the foreseeable future.
As Cointelegraph reported earlier this week, Bitcoin will seek to extend its gains in the first quarter of 2021, several metrics suggest.