Bitcoin kept up the volatility on Dec. 30 with a new all-time high swiftly turning into a volatile battle between bulls and bears.
Data from price trackers including CoinMarketCap and TradingView showed a tug-of-war for price supremacy during Wednesday trading, after BTC/USD hit $28,600.
Despite a record high for the largest cryptocurrency, successes which had built up overnight on Tuesday were short lived, with Bitcoin subsequently diving by $1,000 in just five minutes.
A bounceback avoided further losses, with press-time levels circling $28,000 as sudden movements continued to characterize the market.
$27,700 proves crucial support test
For popular analyst Michaël van de Poppe, that level now formed a critical pivot which would decide future trajectory. Maintaining $27,500 would provide room for a push to $30,000 or even $32,800, he explained, while a breakdown would open up levels around $25,800.
“In that case, if we drop that far down, you want to see buyers stepping in again in this zone again,” he said.
“If buyers are stepping in in this zone and we get an immediate bounce to $27,000 again, most likely the bottom is in. However, if we get a very weak bounce—towards $26,500, for instance—most likely we’re going to chop around and fall further down the line, in which case the next support area is around $24,000.”
As Modern Consensus reported, analysts agree that the holiday season bull run on Bitcoin was not a result of fresh institutional buyers. Rather, retail attention was beginning to appear, along with whales who were buying up the available supply below $30,000.
A look at exchange orderbook data at press time showed major selling pressure in place at $28,500 and $29,000, with a final block between $29,700 and $30,000. Overcome this and empty space would greet bulls again, with no resistance at any point in the chart to halt a fresh surge.
Woo: Bitcoin will divorce from Tulips in 2021
Beyond the short term, meanwhile, attention was focusing on the promise of 2021, which many believe will see unique moments in Bitcoin’s history continue to flow.
“#Bitcoin has had 12yrs of capital inflows with minimal outflows, and a decade long span of doubling users every yr,” statistician Willy Woo summarized on Wednesday.
“Today ~2% of the world population has exposure. Next year people cease to think of it as a Tulips bubble. It won’t ever be this cheap again.”
Woo, along with stock-to-flow Bitcoin price model creator PlanB, continued to highlight Bitcoin’s bull run being in its earlier phase when compared to behavior from 2013 and 2017. Next year, then, should provide the main event, they argued.
“#Bitcoin price is tracking Stock-to-Flow model like clockwork,” PlanB tweeted on the long-term outlook alongside the latest edition of his Stock-to-Flow Cross-Asset (S2FX) model chart this week.
“If BTC does follows its historical path, we will take out gold in 2021-2024, and real estate 2024-2028. After real estate we can not interpolate anymore and have to extrapolate, uncharted waters, hyperbitcoinization?”