High volume surge propels Bitcoin price to a new all-time high at $29,000

Please log in or register to like posts.

Bitcoin bulls obliterated the $28,500 resistance with a high-volume surge, but the $30,000 level could still pose a challenge.

Within the last hour, the Bitcoin (BTC) price rallied to set a new all-time high at $29,000. 

On Dec. 29, the Bitcoin price attempted to push through a stiff resistance cluster at $28,500, but after rallying to $28,600, the price rejected with a sharp correction to $27,300.

Daily cryptocurrency market performance. Source: Coin360

Today’s move to $29,000 came after a high-volume surge pushed through the $28,500 resistance, but the battle for $30,000 is far from over.

Data from Material Indicators shows there are still sell walls near the $30,000 level at Binance and other major cryptocurrency exchanges.

BTC/USD sell walls near $30,000. Source: Material Indicators

Barring another sustained high-volume surge in purchasing volume, the presence of sell walls suggests that a rally to $30,000 may trigger a strong sell-off and cause BTC price to revisit key underlying supports at $28,000 and $27,300, where the 20-day moving average currently resides on the 4-hour timeframe.

$30,000 then moon?

Many retail traders expect the Bitcoin price to soar well above $30,000 once the psychological barrier is overcome, but Nunya Bizniz, a popular trader on Twitter, pointed out that above $30,000, Bitcoin price begins to look a bit overextended, as the 1.618 Fibonacci retracement is at $30,196.

BTC/USD monthly chart. Source: Twitter

Given that Bitcoin price has rallied 64.9% since the start of December, hitting the 1.618 Fib level could provide a signal that a pullback is on the cards, but ultimately, volume will be the primary indicator of where the price may go.

Currently, Bitcoin price has gained 302.6% for the year and is vastly outperforming gold and traditional markets like the Dow and S&P500. For Q4, BTC has rallied by 168.32%, securing the second-best quarterly performance since 2017 when the digital asset gained 210.13% in Q4.

Leave a Reply

Your email address will not be published. Required fields are marked *