High Volume Surge Propels Bitcoin's Price to $29,000

Photo: Coin Telegraph

(Coin Telegraph) - Within the last hour, Bitcoin's price rallied to set a new all-time high at $29,000. 

On Dec 29, Bitcoin price attempted to push through a stiff resistance cluster at $28,500, but after rallying to $28,600 the price rejected with a sharp correction to $27,300.

Daily cryptocurrency market performance. Source: Coin360 

Today’s move to $29,000 came after a high volume surge pushed through the $28,500 resistance but the battle for $30,000 is far from over.

Data from Material Indicators shows there are still sell walls near the $30,000 level at Binance and other major cryptocurrency exchanges.

BTC/USD sell walls near $30,000. Source: Material Indicators

Barring another sustained high volume surge in purchasing volume, the presence of sell walls suggests that a rally to $30,000 may trigger a strong sell-off and cause Bitcoin's price to revisit key underlying supports at $28,000 and $27,300 where the 20-day moving average currently resides on the four-hour timeframe.

$30,000 then moon?

Many retail traders expect Bitcoin price to soar well above $30,000 once the psychological barrier is overcome but Nunya Bizniz, a popular trader on Twitter, points out that above $30,000 Bitcoin price begins to look a bit overextended as the 1.618 Fibonacci (Fib) retracement is at $30,196.

BTC/USD monthly chart. Source: Twitter

Given that Bitcoin price has rallied 64.9% since the start of December, hitting the 1.618 Fib level could provide a signal that a pullback is on the cards but ultimately, volume will be the primary indicator of where the price may go.

Currently, Bitcoin price has gained 302.6% for the year and is vastly outperforming gold and traditional markets like the Dow Jones and S&P500. For the fourth quarter, Bitcoin has rallied by 168.32%, securing the second-best quarterly performance since 2017 when the digital asset gained 210.13% in the fourth quarter.

Reprinted from Cointelegraph.com. The copyright is reserved the original author.