Bitcoin (BTC) passes the $30,000 mark

Bitcoin (BTC) passes the $30,000 mark

The year 2021 is starting well for Bitcoin (BTC), which has just passed the $30,000 mark. After setting a new historical record above $20,000, Bitcoin’s upward thrust has not stopped.
The new year starts with a bang for the Bitcoin course. The Queen of Cryptomoney has just surpassed $30,000, a true performance that comes just 2 weeks after she surpassed her previous historical record of $20,000.

Volumes on the platforms are at record highs, institutional investors continue to flock in Bitcoin Profit massive numbers, and confidence in Bitcoin has never been higher, all factors that have pushed Bitcoin towards this colossal value.

From a fundamental point of view, Bitcoin has never been in such conditions. For several months now, almost everything has been in its favour, which has led to a constant increase in demand and thus in the price.

The last few days of 2020 were particularly prolific for Bitcoin, where it closed each new day with an increase of between $500 and $1,000. Bitcoin gradually climbed the ladder until it reached the symbolic $30,000 mark.

In only 17 days, Bitcoin thus posted a performance of more than 50% upwards, going from $20,000 to $30,000. Its total capitalization even reaches 560 billion dollars:

Bitcoin (BTC) prices since its previous all time high of 16 December 2020 – Source: TradingView – BTC/USDT

A correction to come?

In any case, this rapid rise in Bitcoin is not very healthy. As many analysts point out, a consolidation of Bitcoin’s price is necessary for the uptrend to continue and for the ensuing correction not to be too severe.

This move above $30,000 is therefore accompanied by uncertainty. Is Bitcoin poised to retrace sharply? This bullish situation is particularly extreme and requires a certain amount of caution.

The dominance of the queen of the cryptomoney industry is reaching new heights and approaching 73% resistance. At the time of writing, it is close to 72%, a metric that must be kept in mind and which could trigger a single decline in Bitcoin.

As we indicated in our technical analysis of last December 28, the current increase in Bitcoin is excessive. We are well into a bull-run, but the price of an asset never rises in a straight line indefinitely. The greater the impulse phase, the greater the correction phase can be in return.

As Bitcoin has been in a price discovery phase since it went above $20,000, no tangible medium can be used as a reference in the event of a correction. The closest support is the $20,000, the former all time high of Bitcoin.