Bitcoin’s price has reached an all-time high but is trying to surpass $ 30,000.
Bitcoin (BTC) price hit an all-time high of $ 29,700 on major exchanges on January 1st. In other words, BTC is only 1% away from the psychological resistance level of $ 30,000.
Breaking $ 30,000 could boost renewed confidence in the market with the last technical resistance just below this level.
Therefore, in the short term sellers will try to defend the $ 30,000 resistance level with back-to-back sell orders. Exchange order books show large sell orders in the range of $ 29,800 to $ 30,000.
$ 29,800 is critical for another rise for Bitcoin
Exchange order books on both Binance and Bitfinex show relatively large sell orders from $ 29,800 to $ 30,000. This means that sellers will lead the Bitcoin withdrawal before it reaches $ 29,800.
A cryptocurrency trader known as “Loma” similarly said that if Bitcoin refused $ 30,000, it would likely come back at $ 29,800.
Traders in the Bitcoin futures market are trying to suppress the price of BTC and have been in short positions aggressively in the past 24 hours.
The futures funding rate on Coinbase and other major exchanges remained around 0.01% despite the recent rally. At times, it fell below 0.01%, indicating that the majority of the market is open or selling BTC.
However, retail investors in the Bitcoin spot market, which refers to exchanges without derivatives and leverage, are accumulating BTC.
On December 31st, shortly before the New Year, the Bitcoin price rose to an all-time high. Analysts at Santiment said they detected an increase in in-chain movements that could indicate retail backlog.
Retail investors on Coinbase likely bought Bitcoin as we enter the New Year, as Coinbase is seeing a huge premium over other major exchanges like Binance.
In the near term, as the price of Bitcoin approaches $ 30,000, there will likely be a battle between short-term sellers and retail investors in the spot market.
In the near term, $ 29,800 is seen in Bitcoin as the key level. If BTC exceeds $ 29,800 without much difficulty, a wider rally of over $ 30,000 becomes possible in the foreseeable future.
Bitcoin will try to increase its gains in the first quarter of 2021. At the time of writing, BTC is trading at $ 29,329.