The Bitcoin (BTC) rate is currently hovering around $27,500 and even tapped a new all time high at $27,750. We look at the charts and discuss possible scenarios, read the update here!
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It is again the time of year when regular shares close markets. And little volume prevails. A quiet time with little movement. None of that is true on the Bitcoin market. Where markets close during the holidays, Bitcoin’s price makes a big breakthrough.
In the past week, we have seen a price that remained at around $24,000 and met with considerable resistance. This looks like a new temporary summit for Bitcoin. With the prospect of a somewhat longer consolidation than we have seen in recent weeks.
The fact that we saw an outbreak towards $27,750 over Christmas was on the one hand unexpected, but on the other hand not a crazy picture. An image that we see more often on the cryptocurrency markets. That they care little about legacy markets. Which makes us think at the moment. Are we going to see the $30,000 this year?
Bitcoin 4-hour chart
Looking at the 4-hour chart of Bitcoin’s course, we can see that it had been consolidating for quite a week. And had found quite a bit of resistance around $24,000.
But $22,500 did not give up and showed the bottom end of the consolidation range. A rather tight range, but with decreasing volume a place where the price could have linger longer.
Testing $25,000 resulted in a fall to the bottom of the range towards $22,500 but soon showed recovery upwards. The second attempt resulted in a movement towards $27,750. A new all time high of the Bitcoin price.
Bitcoin 4-hour chart 27 December 2020
We see that the course there is currently testing a slight resistance. This may result in another movement up towards $30,000.
Where we will most likely see the next big resistance. How the price reacts to this is difficult to say. But a short pullback is not unlikely.
Should the price drop a bit, the price around $24,500 will be a first stronger support. Partly due to the longer consolidation around that level.
This has created a more stable safety net. If this safety net breaks, there will still be a lot of support up to $22,500.
Bitcoin hour chart
If we take Bitcoin’s hourly chart, we see that the course is also moving well above the uptrend on lower timeframes. Testing the uptrend has ensured that the course has risen considerably.
Bitcoin hour chart 27 December 2020
Trying to break through $24,500 resulted in a brief correction with a very nice break retest. The price then rose sharply to $3,000.
That would have been a very nice entry for a long position (blue bar). Where we would have closed it at the current resistance around $27,750.
Where we will be going with the price in the coming hours and days is very difficult to say. We are on high and low timeframes in an uptrend and have not yet seen a real correction.
At the current rate of increase we are likely to see the $30,000 in the short term. With a correction as a result. If only that were the case. That Bitcoin’s price is going to be in this uptrend for much longer.