Bitcoin price breaks the $ 37,000 resistance. This is the new ATH, and what’s next for BTC?
Bitcoin recorded a new all-time high of $37,000. Despite the fact that BTC does not stop its price movement up, crypto traders are wondering — where will the king of cryptocurrencies be next?
Bitcoin again conquered a new historical high
Bitcoin continues to set new price records in 2021: the price of BTC topped $ 37,000 for the first time today, surpassing its previous all-time high set just days earlier at $ 34,800 on January 3.
When Bitcoin whales liquidated more than $ 2 billion in cryptocurrency on major exchanges on January 4, Bitcoin underwent a relatively huge correction, dropping below $ 28K. However, the crash was short-lived, with BTC recovering quickly and reaching new all-time highs above $37,030.
Since overcoming the psychological resistance of $ 20K on December 16, the price of BTC has increased by about 80%, and has increased by more than 26% in the last seven days alone, mainly due to the influx of institutional investment.
Bitcoin Price Analysis: What to expect?
Bitcoin has resumed its uptrend after holding the 30,000 level yesterday and just hit a new all-time high of $ 35,879. 35 today. On the 4-hour chart, we can note that Bitcoin gets a beautiful bullish pin bar after reaching 30,000 (as shown in the circle), the price resumes its upward momentum and reaches a new high today.
Currently, the BTC price is facing resistance at $ 35,900, and the previous top at $ 3K, has now become a new support level that traders can pay attention to, which also rhymes with the 50% Fibonacci retracement level. If it breaks, the 0.618 level at 32,397. 86 is expected to be a strong support level.
However, on the weekly timeframe, we can see that the RSI of the BTC price has gone far beyond 90, which has not happened since the last peak of the bull market. This is a clear sign of overbought BTC and the possibility of a rollback at any time. Judging from the experience gained in the last bull market, a pullback of 10% -30% would be useful for the BTC to maintain the uptrend.
Even though the RSI is very high, this does not mean that the price has peaked or that we are close to the top. This is because in the crypto bull market, the RSI very often remains in the overbought zone. With increasing buying pressure from institutional investors and high net worth, it would be very dangerous to predict the top and trade against the trend, and it is often considered a safer action to buy during a pullback than to sell the market.
Ethereum Leads Bullish Altcoin Rally
Ethereum (ETH) has also played a crucial role in bringing the crypto space closer to a $ 1 trillion market cap. Thanks to the booming DeFi sector and the launch of Ethereum 2.0, the second cryptocurrency recently broke the $ 1,000 mark. According to CoinMarketCap, it is currently trading at $ 1,114, with a market capitalization of $ 126 billion. This is the closest value to the historically record price of $ 1,400 per ETH.
Other cryptocurrencies such as Cardano (ADA), Polkadot (DOT) and Litecoin (LTC) have also risen significantly in value over the past few days, with LTC replacing Ripple (XRP) as the fourth-largest digital asset by market capitalization.