Bitcoin (BTC) Update: Push the price to $30,000 by FOMO?
The Bitcoin (BTC) rate is currently hovering around $27,500 and even tapped a new all time high at $27,750. We look at the charts and discuss the possible scenarios, read the update here!
It is again the time of year when regular stock markets close. And little volume prevails. A quiet time with little movement. None of that is true on the Bitcoin market. Where markets close during the holidays, Bitcoin’s price makes a big breakthrough.
Over the past week, we’ve seen a price around $24,000 that has met with considerable resistance. Seemingly a new temporary summit for Bitcoin. With the prospect of a somewhat longer consolidation than we’ve seen in recent weeks.
The fact that we saw an outbreak towards $27,750 over Christmas was on the one hand unexpected, but on the other hand not a crazy picture. An image we see more often on the cryptocurrency markets. That they don’t care much about legacy markets. Which makes us think at the moment. Are we going to see the $30,000 this year?
Bitcoin 4-hour chart
Looking at the 4-hour chart of Bitcoin’s course, we can see that it had been consolidating for quite a week. And had found quite a bit of resistance around $24,000.
But $22,500 didn’t give up and showed the bottom end of the consolidation range. A rather tight range, but with decreasing volume a place where the price could have hung around longer.
Testing $25,000 resulted in a fall to the bottom of the range towards $22,500 but soon showed recovery up. The second attempt resulted in a movement towards $27,750. A new all time high of the Bitcoin price.
We see that the price there is currently testing a slight resistance. Which could result in another move up towards $30,000.
Where we will most likely see the next big resistance. How the price reacts to this is hard to say. But a short pullback is not unlikely.
Should the price drop a bit, the price around $24.500 will be a first stronger support. Partly due to the longer consolidation around that level.
This has created a more stable safety net. If this safety net breaks, there will still be a lot of support up to $22.500.
Bitcoin hour chart
If we take Bitcoin’s hourly graph, we see that the course is also moving well above the uptrend on lower timeframes. Testing the uptrend has ensured that the course has risen significantly.
Trying to break through $24,500 resulted in a short correction with a very nice break retest. The price then rose sharply to $3,000.
That would have been a very nice entry for a long position (blue bar). Where we would have closed it at the current resistance around $27,750.
Where we will be going with the price in the coming hours and days is very hard to say. We are on high and low timeframes in an uptrend and have not seen a real correction yet.
At the current rate of increase we are likely to see the $30,000 in the short term. With a correction as a result. Even if it can only be that way. That Bitcoin’s price is going to be in this uptrend much longer.