BTC/USD Soars to New Heights. The place to Subsequent?

Bitcoin (BTC/USD) Value Outlook:

• Bitcoin bulls regained management over the quiet vacation interval, briefly pushing the cryptocurrency above $28,000 for the primary time in historical past
• With prior highs surpassed, subsequent resistance turns into tougher to establish
• Nonetheless, beneficial properties established in uncommon buying and selling circumstances could possibly be weak when the market reawakens
• Bitcoin vs Gold: High Variations Merchants Ought to Know

Bitcoin Value Forecast: BTC/USD Soars to New Heights. The place to Subsequent?

Bitcoin loved one other vacation rally, this time surging properly past prior information to commerce above $28,000 for the primary time in historical past. Registering an intraday excessive close to $28,330 on December 27, the most important cryptocurrency by market cap has prolonged its rally within the year-to-date to roughly 280%. Whereas substantial, latest beneficial properties have been established underneath distinctive vacation buying and selling circumstances which will depart them weak within the days forward.

Bitcoin (BTC/USD) Value Chart: Day by day Time Body (November 2017 – December 2020)

Equally unstable worth motion could possibly be noticed through the Thanksgiving interval in the US, when Bitcoin skilled a substantial pullback earlier than rallying to recoup losses simply hours later. Whereas unstable worth motion is actually commonplace in markets, the cryptocurrency market stays in a league of its personal when it comes to the magnitude of volatility.

Within the late-November turbulence, BTC/USD fluctuated by greater than 20% in a matter of hours, whereas worth surged practically 20% from Christmas day to December 28. To make sure, worth motion of this magnitude is nothing new within the cryptocurrency market, however it does stay a quite distinctive attribute that may be exacerbated when liquidity is low. Thus, Bitcoin might have to barter continued volatility within the days forward till the market absolutely reawakens within the New 12 months.

Bitcoin (BTC/USD) Value Chart: 4 – Hour Time Body (November 2020 – December 2020)

That being mentioned, the longer-term outlook stays encouraging. Whereas latest beneficial properties could also be weak to shorter-term pullbacks, the institution of a brand new all-time excessive is contemporary proof the Bitcoin rally may look to proceed into 2021. As worth soars larger, technical ranges of word turn into tougher to establish given the dearth of previous worth motion on the present altitude.

Nonetheless, Bitcoin bulls might encounter resistance across the $30,000 mark, which isn’t solely a clear psychological determine, but in addition coincides with the 161.8% Fibonacci stage derived from the sequence drawn off the coin’s 2017 excessive to 2018 low. Past $30,000, bonafide technical boundaries turn into quite sparse – in my view. Within the meantime, hold updated on latest worth developments and evaluation utilizing Twitter by following @PeterHanksFX.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and comply with Peter on Twitter @PeterHanksFX