The world’s dominant cryptocurrency, Bitcoin, hit a lifetime high of $28,400. In 2020, Bitcoin witnessed massive gains. However, we all know that it is very challenging to determine the next level. Traders believe that Bitcoin could increase to two levels: $30,000 and $36,000. The latest has become a popular near-term prediction as the options markets exhibit a high likelihood of BTC reaching $36,000 in the following month.
Byzantine General, a pseudonymous trader, noted that he predicts Bitcoin topping out at $30,000. He explained that $30,000 is the golden ratio extension level.
On December 27, BTC immediately witnessed massive volatility, ultimately dropping 6.5%, within a span of a few hours after the price hit an all-time high of $28,200.
According to data from Cointelegraph Markets, TradingView, and Coin360, BTC/USD boosed and then lost considerable amounts throughout trading on Sunday.
After topping 15% 24-hour gains, the dominant cryptocurrency faced heavy selling pressure over $28,000. However, it was unable to maintain its extremely rapid upward trajectory. BTC then dropped to lows of $26,500.
According to Cointelegraph, earlier in the day, the dominant cryptocurrency set several records. Its latest moves passed a $500 bn market capitalization for the first time.
Furthermore, Monday should see an enormous gap in Bitcoin futures markets ever imagined.
The essential thing to note is that since overcoming the $24,000 resistance, the digital currency has traded in unknown territory. Only spontaneous sell levels created fiction in what seems to be an increasingly parabolic market.
More and more people are beginning to adopt Bitcoin
According to Michaël van de Poppe, Cointelegraph Markets analyst, the bull cycle of bull cycles has started. More and more people are beginning to adopt Bitcoin and cryptocurrencies.
Furthermore, analysts at Whalemap, a data analytics firm that tracks Bitcoin whale activity, announced that Bitcoin had made a strong floor in the $23,000 to $23,500 range.
Bitcoin needs to establish solid support areas during a bull run due to the risk of sudden corrections. Notably, Suppose whale clusters are present at high price levels, like $23,409. In that case, whales should bid higher to maintain Bitcoin’s momentum.
In the near term, the whale clusters and the parabolic trendline confirm that $23,409 and $24,000 are the two key levels Bitcoin must hold.
Moreover, below $24,000, an accelerated correction rise could worsen if whale cluster support areas are breached.