The price of Bitcoin (BTC) reached a new high of more than $ 29,400 on January 1 over the major exchanges. In other words, BTC is only 2% of the psychological resistance level at $ 30,000.
By breaking $ 30,000, confidence in the market can be renewed, with the last remaining technical roadblock just below this level.
Therefore, in the short term, sellers will want to defend the $ 30,000 resistance level with stacked sales orders. Exchange order books show large sales orders in the range of $ 29,800 to $ 30,000.
$ 29,800 is Critical for Bitcoin
Exchange order books on Binance and Bitfinex show relatively large sell orders ranging from $ 29,800 to $ 30,000. This means that sellers will try to lead a Bitcoin pullback before it reaches $ 29,800.
A pseudonymous cryptocurrency trader, known as ‘Loma’, also said that if Bitcoin were rejected at $ 30,000, it would probably drop from $ 29,800. He said:
‘BTC is blowing $ 30,000 into the $ 31-33k territory over the next few days, or we front or reject at about $ 29,800. Actually, I say, if you are short of $ 30,000, there is a very good chance that you will be overwhelmed. ‘
Traders in the Bitcoin futures market have been trying to suppress the price of BTC and have been aggressively shorting for the past 24 hours.
The futures contract on Coinbase and other major exchanges remained around 0.01% despite the recent rally. Sometimes it fell below 0.01%, indicating that the majority of the market has a deficit or sells BTC.
The funding rate is a New Year’s gift I can leave $ BTC # Bitcoin pic.twitter.com/GSPCDnZuKu
– Coinalyze (@coinalyzetool) 31 December 2020
However, small investors in the Bitcoin spot market, which refers to stock market without derivatives and leveraged financing, have built up BTC.
On December 31, shortly before the new year, the price of Bitcoin rose to a new high of all time. Analysts at Santiment said they noticed an increase in movements to the chain, which could indicate retail accumulation.
Since Coinbase has seen a huge premium over other major exchanges, such as Binance, small investors on Coinbase have likely bought Bitcoin going into the new year. The analysts said:
“Since # Bitcoin’s markets first opened in 2021 about 20 minutes ago (UTC), prices rose to $ 29,460 as $ BTC made another AllTimeHigh. Active addresses have been increasing over the past few hours to support this pressure. ”
In the short term, Bitcoin is likely to see a battle between future short sellers and retail investors in the spot market as the price approaches closer to $ 30,000.
What happens next?
In the short term, the key is to see Bitcoin’s behavior at $ 29,800. There is a strong possibility that it will retreat without rising to the level, which could lead to a decent correction.
If BTC rises above $ 29,800 without much trouble, a broader rally above $ 30,000 is likely to occur in the foreseeable future.
As Cointelegraph reported earlier this week, Bitcoin will want to expand its profits in the first quarter of 2021, several statistics suggest.