Bitcoin Surge Isn’t Over Yet, Why BTC Could Hit $34K Soon
Bitcoin price remained in a bullish zone and climbed above $30,000 against the US Dollar. BTC corrected lower after reaching a new all-time high, but it is likely to continue higher towards $34,000.
In the past few days, there was a strong increase in bitcoin price above the $25,000 resistance against the US Dollar. The BTC/USD pair broke many major barriers near $28,000 and $30,000 to continue higher.
The bulls even pushed the price above the $32,000 level and BTC traded to a new all-time high near $33,300. Recently, there was a sharp downside correction below the $32,000 level. The price even spiked below the $31,000 level, but it stayed above the $30,000 support.
A low is formed near $30,316 and it started a fresh increase. There was a break above the $31,000 resistance zone. The bulls were able to push the price above the 50% Fib retracement level of the recent decline from the $33,298 high to $30,316 low.
It is now trading nicely above the $32,000 resistance zone. There was a also a break above the 76.4% Fib retracement level of the recent decline from the $33,298 high to $30,316 low.
It seems like bitcoin price may soon clear the $33,298 high and trade to a new all-time high. The next key resistance could be near the $34,000 level. It is close to the 1.236 Fib extension level of the recent decline from the $33,298 high to $30,316 low.
If there is a fresh downside correction, bitcoin price might find bids near the $32,000 and $31,500 levels. There is also a major bullish trend line forming with support near $30,800 on the 4-hours chart of the BTC/USD pair.
The main support is now forming near the $30,000 level. A close below the $30,000 level might call for an extended decline towards the $28,500 level.
4 hours MACD – The MACD for BTC/USD is gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.
Major Support Level – $30,800
Major Resistance Level – $40,000
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Bitcoin Gets A New Year Present, As It Breaks Above $ 30,000 – Forex News by FX Leaders
Last year was great for cryptocurrencies; they started 2020 on a bullish footing, with Bitcoin increasing from around $ 7,000 in January until $ 13,200s by the end of February. But, as the coronavirus traveled to Europe, traders panicked and all markets plunged, apart from the USD, which surged as a global reserve currency. But, the tables flipped by the end of March and the USD turned bearish while most markets turned bullish.
Bitcoin reversed from the March crash which sent it more than $ 9,000 lower to $ 4,000 and hasn’t looked back since then. In fact, it has only been picking up pace as the months roll and the surge doesn’t seem to end. Bitcoin headed to $ 20,000 in November and after finding some resistance at that level which was the high in 2017, it eventually broke above it by the middle of December.
I though that we were going to see a pullback to $ 20,000 to test it if that zone would turn into support this time around, but buyers didn’t want to wait. They kept on piling on, since everyone wants a piece of the action, afraid they will miss on this big opportunity, which has turned into a self-fulfilling prophecy. The more people think it will increase, the more they pile on, which pushes the price even higher, and the snowball keeps rolling.
Bitcoin closed 2020 on a strong bullish momentum and it broke above the next big level at $ 30,000 without much resistance on the second day of 2021. Buyers pushed the price to $ 33.250s, so the door for the next target at $ 40,000 is open. But, the problem is that cryptos are going against their initial aim of being a means of transaction outside of the traditional main banking system, particularly Bitcoin.
Cryptocurrencies turned from risk assets to safe havens in 2020. But with the price above $ 30,000 for a single Bitcoin coin, the scalability problems increase. This issue will arise soon, although the crypto market is in the middle of the second massive bullish run and until the buying frenzy ends, they will keep surging as they were doing in 2020.
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