Bitcoin Hits New All-Time High of $29,285, Aided by High Volume
Bitcoin (BTC) recorded yet another all-time high of $29,285.61 few hours back. Interestingly, the king of crypto retraced to $27,300 yesterday after failing to break above the resistance level of $28,500. But, the scenario was totally different today.
The crypto broke above the resistance cluster with huge volumes, but the path to $30,000 still has hurdles.
Data provided by Material Indicators shows that there are large chunk of sellers near $30,000 level at Binance and other top cryptocurrency exchanges.
Unless there is huge buying spree accompanied by heavy volume, the level of $30,000 is difficult for the crypto to break at this point in time.
That may trigger profit booking, which would ultimately force a retracement of Bitcoin to $28,000 and $27,300, where 20-day moving average exists on the four-hour time frame.
Several retail traders anticipate the price of Bitcoin to surge more than $30,000 after the psychological barrier is crossed, but Nunya Bizniz, a well-known trader on Twitter, has opined that any price over $30,000 will be perceived as over-stretched rally as the 1.618 Fibo retracement level is $30,196.
1.618 Fib Ext in the cross hairs! pic.twitter.com/EInuTO24k6
— Nunya Bizniz (@Pladizow) December 30, 2020
As Bitcoin gained about 65% since the beginning of this month, reaching the 1.618 Fib level could offer a signal that a retracement will soon happen, but eventually, volume will be the main indicator of trend.
The current price of $28,971.34 reflects a gain of about 302% for 2020 and is eclipsing gold in a big manner and conventional markets such as the Dow and S&P500. During the fourth-quarter, Bitcoin has gained roughly 168.32%, attaining the second-best quarterly performance in three years when the cryptocurrency rallied 210.13% in the fourth-quarter.