Bitcoin (BTC) is inching closer to the psychological $30,000 mark as bulls push its price past 29,000 and set a new all-time high
The largest cryptocurrency by market cap has continued its bull run and broke the last resistance level, positioning itself between $28,600 and $29,300.
Bitcoin’s overall outlook is extremely bullish as BTC Bulls move the market without any significant increase in volume. Taking a look at the weekly performance, BTC managed to score gains of 9.42%, while ETH managed to gain 17.06%. On the other hand, XRP lost 26.55% in the same period.
At the time of writing, BTC is trading for $28,960, which represents a price increase of 58.68% when compared to its previous month’s value.
BTC posted a strong daily candle yesterday that brought its price above $29,000, and set a new all-time high at exactly $29,300. While this level is just $700 shy of the psychological $30,000 mark, many are calling for a large retracement after the price hits its next level.
Sell walls currently present at and around $30,000 are another indicator that a likely retracement is on the way. Bitcoin will need quite a lot of bull pressure to eat through these profit-taking sell walls and ascend even further.
BTC/USD daily price chart. Source: TradingView
The daily chart technical overview shows that BTC’s RSI indicator remains heavily overbought, currently sitting at a value of 81.44.
Analysts are calling for a retracement after hitting the $30,000 level as Bitcoin’s bull run is getting unhealthy due to no real corrections happening after the price spikes.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin’s hourly time-frame shows that the cryptocurrency didn’t really have a lot of resistance during its most recent push. Its price started trading sideways after hitting $29,300 twice, creating a short-term narrow range between $28,600 and $29,300. Bitcoin has historically traded in such ranges for a very short time, which indicates that the next move is just around the corner.
If all things are taken into account, the most realistic scenario would be BTC hitting the $30,000 mark and then retracing to the sub-$27,300 level, creating a healthy correction before trying to break past $30,000. However, we could also see it break the current sideways trading by moving straight down, in which case the aforementioned level is still in play.