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Bitcoin Price Smashes $35,000 to New ATH, What's Next for the BTC Price?

Bitcoin has recorded a new all-time high of $35,879.36. With no end to the BTC bull run insight crypto traders are wondering—where to next for the pioneer cryptocurrency’s price?

Bitcoin price has surged to a new all-time high again on Jan. 6 with crypto bulls pushing BTC above $35,000 after days of consolidation in the low $30,000 range.

Bitcoin continues to set new price records into 2021, the BTC price breaking above $35,000 for the first time ever today, surpassing its previous all-time high set just days earlier of $34,800 on Jan. 3.

As Bitcoin whales liquidated over $2 billion in crypto on major exchanges on Jan. 4, Bitcoin underwent a comparatively huge retracement dipping below $28,000. However, the crash was short-lived, with BTC quickly recovering, and pressing into new all-time highs above $35,500.

Since smashing the psychological resistance of $20,000 on Dec.16, the Bitcoin price has now gained around 80% and is up over 26% in the last seven days alone, driven largely by an influx of institutional investment.

The Bitcoin price has since retraced to around $35,000 at the time of writing.

Bitcoin Price Analysis—What to Expect?

Source: BTC/USD TradingView

Bitcoin has resumed its uptrend after holding the 30,000 level yesterday and it has just reached a new historical high at $35,879.35 today. In the 4-hr chart, we can note that Bitcoin gets a nice-looking bullish pin bar after it reaches 30,000 (as drawn in the circle), the price has resumed its upwards momentum and reaches a new high today.

Source: BTC/USD TradingView

Currently, the BTC price is facing resistance at the $35,900 level, and the previous top at the $33,000 level has now become a new support level that traders may pay attention to, which also rhymes with the 50% Fib. retracement level. In case it breaks, the 0.618 level at 32397.86 is expected to provide a strong support level.

Source: BTC/USD TradingView

However, in a weekly timeframe, we can notice that the RSI of BTC price has gone far beyond 90, which has not happened since the last top of the bull market. It is a clear sign of BTC being overbought and retracement could occur any time. From the experience learned in the last bull market, a 10%-30% pullback would be healthy for BTC to sustain its uptrend.

Despite the RSI being very high, it does not mean that the price has peaked or that we are near the top. It’s because, in a crypto bull market, it is very common for RSI to keep staying in the overbought region. With the increasing buying pressure from institutional investors and high net worths, it would be very dangerous to predict the top and trade against the trend, and it is often considered a safer action to buy during pullback than shorting the market.

ADA Price Surges Over 100% As Cardano Goguen Update Set For March

The ADA price has surged by over 100% in the past week along with the crypto market and with Cardano’s Goguen update and functional smart contract integration set for March, ADA’s price rally looks far from over.

Beyond the current bullish crypto market sentiment, what factors are driving the ADA price and what can we expect over the next month?

Why is Cardano Price Rising?

Cardano launched its Shelley mainnet in 2020, as part of its developments into a proof-of-stake (PoS) blockchain protocol.

While functional smart contracts are yet to be launched on the Cardano blockchain, the release of Shelley still marked a major achievement for the Cardano blockchain and drove more positive sentiment around the ADA token.

In March, Cardano is slated to undergo the Goguen update, which should see the release of these functional smart contracts. When the smart contracts are live, large-scale decentralized finance (DeFi) protocols and other decentralized applications would be able to launch on top of Cardano—giving it further utility and value.

Researchers at Binance Academy confirmed the smart contract integration of the Goguen update in a report:

”As of December 2020, functional smart contracts cannot be deployed on the blockchain platform. As part of the roadmap, this will roll out as a part of the Goguen update. Following Goguen, the Basho era focuses on optimization of scalability and interoperability, and the Voltaire era introduces a treasury system to address governance.”

ADA Price Analysis

A look at the ADA chart indicates further bullish momentum for the price of Cardano’s cryptocurrency.

Source: Binance ADA/USDT TradingView

In the weekly chart, Cardano price has formed a giant Head and Shoulder Bottom pattern and it took off quickly after it breaks the neckline. If we look at the 14-week RSI, we are in the oversold region. We may see the price have a little bit of consolidation here before another leg up.

Source: Binance ADA/USDT TradingView

If the price has a minor retracement from here, we can observe if $0.293 (0.382 Fib. retracement level) and $0.273 (0.5 Fib. retracement level) can provide enough buying interest for further upside.

Source: Binance ADA/BTC TradingView

You may have thought that ADA has recently surged a lot and it is too late to be in the game. However, if we look at the ADABTC chart, it still has a lot of room to grow. Its price may challenge the 1800 or 2300 sat level if we have an imminent minor alt season.

If we look at the development plan of Cardano on their website. They have just launched their Shelly mainnet last year, and if everything goes perfectly with their Goguen mainnet launch at around March 2021, it would not be at all surprising for the ADA price to surge for 2x or 3x gains.

Chainlink Rises 50% in a Week, LINK Price Rally Set to Break ATH

Chainlink is finally joining the crypto price rally after LINK’s price broke above $16. Our technical analysis indicates that there is plenty of room for a price rally passed $20 and on to a new all-time high (ATH).

Chainlink has been lagging behind Bitcoin and the rest of the crypto market over the past few weeks, hovering around the low $10 range. As of LINK’s overnight rally, the LINK price has now gained around 50% since the start of 2021.

LINK’s price has seen a massive surge from its recent lows of $8.00 that were set in December when the entire market experienced a temporary downtrend. At the time of writing, the Chainlink price up over 15.54% in the last 24hrs and its current price is $16.68 according to CoinMarketCap.

As Bitcoin and Ethereum rallied bringing most of the crypto market along for the ride, LINK appeared to face intense resistance at around the $14 dollar level. After breaking through this resistance where it has consolidated the past week, LINK quickly surged above $16.

LINK’s price consolidation appears to be over and Chainlink’s token could easily see a price of above the $20 level shortly as the crypto bulls take over the market.

LINK Price Analysis

Source: LINK/BTC TradingView

If we look at the LINK/BTC chart, we can notice that there was a false breakout a few days ago, and it quickly went back up and traded within the range. Our view is slightly positive towards the next price movement and it has the potential to break upwards.

Source: LINK/BTC TradingView

In the first part of 2020, LINK was one of the leading performers in the cryptocurrency market, and history may repeat itself in the first quarter of 2021. LINK/BTC is in the area of strong buying interest now and the price could easily increase 2x – 3x in the next couple of months. However, we cannot overlook the risks, and we just need to observe if the previous low of the weekly bar of LINK/BTC will be defended in the future. If the support is held, it could see the LINK price surge to the $20 ~ $30 area and record a new all-time high.

Will Bitcoin Rise, Consolidate or Crash After BTC Price Rally to $40,000?

The Bitcoin price set yet another all-time high with BTC rallying to $40,394 making an 11% gain yesterday before dropping $3,500 almost immediately back below $37,000. Where to next for Bitcoin, the world’s most dominant cryptocurrency; will the BTC price rise, consolidate or crash?

Bitcoin is trading at $38,158 at the time of writing with a market capitalization of around $700 Billion.

Bitcoin Price Rally

The year 2020 has seen Bitcoin in action, not so much as a currency but as a hedge against macroeconomic uncertainty. Unlike the 2017 retail crypto bull run, financial analysts and experts believe that Bitcoin’s bull run is largely driven by the surging investment from established institutions like Microstrategy, Paypal and MassMutual who now view BTC as a safe haven asset to hedge against rising inflation.

Gavin Smith, CEO of Panxora said in a note:

“It’s no surprise that the world is watching bitcoin right now. Its price is soaring as the after-effects of the COVID monetary stimulus continue to raise concerns about inflation. As a result of quantitative easing, market players are adopting Bitcoin to hedge against instability. But while further growth is inevitable, investors should not expect this to move in a straight line.”

Paolo Ardoino, CTO at Bitfinex discussed the rising utility of Bitcoin as a hedge against inflation:

“Bitcoin is rising in the eye of a perfect storm. The backdrop is one of continuing global macroeconomic uncertainty that has the potential to devalue fiat currencies. High finance’s embrace of the digital gold narrative may potentially be followed by retail as the market cap of all cryptocurrencies reaches $1 trillion for the first time.”

The BTC price was trading at around $10,000 only four months ago in early September and did not break through the $20,000 psychological threshold until mid-December. Once Bitcoin broke through $20K there was no stopping the cryptocurrency. BTC took off, smashing through $28,000 over the Christmas weekend and rising above $30,000 on Jan.2. In less than a month, BTC has doubled in value and has increased over 700% since its low of $4000 in March last year.

Bitcoin continues to gain a lot of public and institutional attention as BTC surged past the $40,000 for the first time in its history, pushing the total value of the entire cryptocurrency market beyond $1 trillion. The Bitcoin price also fluctuated by over 17% yesterday and Smith added that new investors should be careful when entering the reputably volatile crypto market despite the current bull run of Bitcoin. He said:

“The reality is that bitcoin is far from being a magic money tree, nor is it free from downward price swings. In fact, we can expect dips as sharp as 25% at times as investors periodically withdraw profits. While they’re right to be optimistic about additional growth, it’s essential to still tread carefully.”

Bitcoin Price Analysis

Source: BTC Futures TradingView

Bitcoin price has hit $40,000 and the total market cap of the cryptocurrency has surpassed 1 Trillion. As we can see on the daily chart, the MACD and RSI has entered an extremely overbought region. It is possible that the price will have a consolidation in the 33,000 to 40,000 region or even have a sharp drop to resume the uptrend.

There are two possible scenarios for the Bitcoin pirce that we may see from here as above, one is price consolidation around this level or potentially a flash crash of up to 15-25%.

Source: BTC/USD TradingView

We can see if $33,279 (0.382 Fib retracement level) or $31244 (0.5Fib retracement level) can provide some solid support for Bitcoin in the coming days in case of a price crash, and these could be a nice entry for BTC. Bitcoin is trading at $38,158 at the time of writing with a market capitalization of around $700 Billion.

Ethereum Price Retraces Below $1,100 With Plunging Crypto Market, Is ETH's Bull Run Over?

Ethereum, the second-largest cryptocurrency in the world is down more than 18% since yesterday, as the ETH dropped below the $1,100 price level. ETH is currently trading just above $1,050.

The cryptocurrency market has lost over $170 billion in total market value over the last 24 hours as the Bitcoin price fell below $34,000. The overall value of the crypto market is currently around $940 billion, down from $1.1 trillion yesterday.

At the time of writing, Bitcoin is trading around $33,500, down more than $8,000 from its recent high of $41,500. The total market cap of Bitcoin is now around $635 billion. BTC is down nearly 15% in the last 24 hours.

Ethereum (ETH) Price Analysis

The Ethereum price had jumped above $1,300 over the weekend in an effort to register another all-time high, but as the crypto market retraces, where can we expect the Ethereum price to go to next?

Source: ETH/USD 4hr TradingView

The price of ETH has broken out of the ascending wedge and fell heavily today. It found support at the $1,000 level and it is holding slightly above it currently. If this can provide a decent support to the price, the ETH may go sideways before further down or resume its upcycle.

Traders need to pay extra attention to the price support $1,000 and it may go to $900 level if it is broken. Currently, it seems that it is unlikely to break the support and therefore we expect a significant price recovery for the ETH price after the big dump.

Ethereum price is trading at $1095 at the time of writing.

Greed Caused the Bitcoin Price 20% Plunge, Will BTC Price Rise Again?

The Bitcoin price suffered a massive correction with the BTC price falling from its recent high of $41,500 to an intraday low of $32,829, dragging the crypto market down with it. But what happened?

The cryptocurrency market has lost over $170 billion in total market value in the last 24 hours as the Bitcoin price fell below $33,000. The overall value of the crypto market is currently around $940 billion, down from $1.1 trillion yesterday.

At the time of writing, Bitcoin has already bounced significantly back to around $35,344, down still around than $6000 from its recent high of $41,500. The total market cap of Bitcoin is now around $660 billion.

The recent cryptocurrency market crash really began on Sunday in the US trading session when Bitcoin dropped from $39,000 to $35,000 within minutes. The world’s largest cryptocurrency recovered quickly to $37,500 but the Asian session added selling pressure on BTC. Blockchain tracking and analytics company Whale Alert reported a massive move earlier today when an unknown user transferred 3,875 BTC worth nearly $138 million to an unidentified wallet.

According to crypto analyst and investor Joesph Young, while many narratives are circling at what precisely caused Bitcoin to drop the answer is simple—greed.

Young tweeted:

“There will be many Bitcoin narratives—miners sold, dxy rose, whales sold, treasury is up, stocks are down, institutions sold. $2.7 billion was liquidated today. The simple answer is the market was overleveraged, got greedy, continue to buy first dips below $39k.”

Peter McCormack the host of podcast “What Bitcoin Did” also reminded his listeners on Twitter that the road to a $1 million BTC price is a long one filled with ups and downs. McCormack wrote in response to online flack he had received from trader’s who had overleveraged their position:

“Peterrrrr!!!!
#bitcoin has crashed and I’m poor!
Only because you ignored me and used leverage, blowing up an account, you dickhead.
These crashes happen, meh, the road to a $1m #bitcoin isn’t straight up. We shake a few hares out on the way.
Be a tortoise.”

Bitcoin Price Analysis

Source: BTC/USD TradingView

For now, after the 20% drop from its high, BTC found support near the 33000 level and found a decent rebound, currently trading at 35500. With the Fibonacci retracement, we can see that is now going to be some further resistance near the 37100 level and we need to pay attention to the Bitcoin price action if it gets there.

Source: BTC/USD TradingView

In the 4-hr chart, the price dropped drastically after the MACD dead cross, and it is important to pay attention to the next candle. We expect more optimistic price moves if this 4-hr candle manages to close in the green.

The William % R indicator is now located in the oversold region, which hasn’t happened since December 29, 2020. It suggests that we may have seen the short-term bottom and the Bitcoin price should either go up again or continue to consolidate sideways.

The Bitcoin price is currently $35,557 according to CoinMarketCap.

Are Zcash (ZEC) and Horizen (ZEN) Immune To The Ongoing Price Corrections?

The cryptocurrency market is currently experiencing a massive price retracement involving almost all of the top cryptos particularly those with significant market cap ranked in the top 100 on CoinMarketCap’s cryptocurrency ranking index. But two altcoins, Zcash and Horizen seem to have avoided the massive sell-off.

Per an earlier report by Blockchain.News, the ongoing price corrections in the crypto market has resulted in the drop in the entire industry’s market capitalization by about $170 billion in the past 24 hours.

While the ongoing market dip is characterized by an 18.69% drop in the price of Bitcoin (BTC) which is currently hovering around $35,000, as well as a huge correction in altcoins, privacy coin Zcash (ZEC) and Horizen (ZEN) appears to be immune to the ongoing corrections.

In contrast to other privacy coins including Monero (XMR) which is down 8.29% at the time of writing, Zcash (ZEC) comes off as a gainer, amassing 11.2% in the past 24 hours to $88.09 according to Coingecko. The coin has proven to be an outperformer at a time when privacy coins are beginning to see increased regulatory scrutiny. ZEC ended the past year with over 110% growth and over the past seven days, the coin has gained over 47% to consolidate its growth.

Alongside Zcash, the Horizen (ZEN) token, the native cryptocurrency of the Horizen ecosystem, a Proof-of-Work network that enables developers to build customizable applications on scalable node networks. The ZEN token is the biggest gainer today with a 31% surge in the past 24 hours to trade at $20.31. The coin is also bullish in its recent run as marked by a growth of 124.7% in the past 30 days and 50.5% in the past week.

The duo of Zcash and Horizen with the growth they have recorded in the past days puts them forth as immune to the ongoing price retracement in the entire crypto market, a rare development for a less recognized altcoin.

Image source: Blockchain.news

Billionaire Bond Manager Jeff Gundlach Says Bitcoin Looks Like A Bubble Waiting to Burst

“Bond King” Jeffrey Gundlach, the founder and CEO of the DoubleLine Capital LP said in a recent interview with CNBC TV that Bitcoin looks like a bubble ready to burst.

During the interview, Gundlach admitted that he became neutral on Bitcoin after the leading cryptocurrency passed the $23,000 level. The investor said that the cryptocurrency hit “bubble territory” once it surged above $23,000 and he does not feel conformable with the crypto’s current levels.

Gundlach said,”I don’t like Bitcoin here, I don’t like things that are upon a stilt-like that,” referring to the cryptocurrency crossing the $23,000 level and advancing more than 300% in 2020.”

On Monday, January 11, Bitcoin dropped to $30,324. Although the cryptocurrency has lost around $10,000 in price since forging new highs of above $41,000 in the previous week, it is still up almost 89% over the previous month. Gundlach said that Bitcoin’s bull run has occurred all too fast.

He said:

“People seem to be so much on one side of the boat that I just really don’t really believe the boat can sail that well, and I think that’s where Bitcoin is on the bullish side right now.”

Besides that, Gundlach admitted that the top cryptocurrency has a “terrific supply and demand dynamic” as increased demands come from institutions. There are only 21 million Bitcoins that can be mined in total. Currently, about 18.5 million Bitcoins have been mined, thus this leaves less than 3 million that have yet to be mined. This means that Bitcoin supply remains scarce as demand rises.

In a DoubleLine webcast that took place on December 11, 2020, Gundlach stated:

“I’m not a Bitcoin pro or con person. I’m not in the cult, and I’m not in the anti-bitcoin cult. I just look at it as a fascinating representation of animal spirits and speculation.”

October 1, 2020, Gundlach appeared on a RealVision interview where he said: “didn’t believe in Bitcoin.” He stated: “I think that it’s a lie,” He further added: “I think that it’s very tracked, traceable. I don’t think it’s anonymous.”

However, on Monday, January 11, told CNBN that he is definitely not a Bitcoin hater.

Bitcoin Boom or Bubble?

Professional investors are mixed in their judgment. While others think that the Bitcoin price may rise, others expect the price to crash. When the price of the cryptocurrency went past $23,000, investors like Jeffrey Gundlach feel that Bitcoin has reached bubble territory.

It is easy to predict that there would be a price bubble, or the price would pop up, but the hardest part is to figure out how and when such events would happen.

However, that would depend on external events such as a scaling-back of the monetary stimulus, an unexpected rise in inflation, or maybe a tiny increase in interest rates. Bitcoin price is uncorrelated with other traditional assets like the U.S dollar. With the weakening value of the U.S dollar, investors see Bitcoin as a safe-haven asset. Bubble territory is not what the price of Bitcoin is saying. The boom shift has already started.

Bitcoin Price Needs to Hold $31,500 to Avoid Deeper BTC Price Plunge says Tone Vays

The Bitcoin price is currently trading at around $33,500 falling from its peak of around $36,000 earlier today. Should BTC fall below the $31,500 level—crypto analyst Tone Vays believes we could see a deeper price plunge to the mid $20K range.

Over the last four days, crypto analyst Tone Vays has been warning Bitcoin traders of a Bitcoin price momentum reversal, so far with incredible accuracy.

On January 11, Vays tweeted his analysis which accurately predicted the $42,000 top for the BTC price:

“Wow, the #Bitcoin MRI Top was on the money today… As I said in my videos last few days, look for a 1-4 day correction then probably a new All-Time High by end of month $BTC.”

The following day on January 12, Vays’ chart once again accurately predicted the BTC price dip to $30,000 where he bought the Bitcoin dip.

According to Tone Vays, Bitcoin is now in the last day of a four-day momentum reversal for BTC and warns that if the Bitcoin price cannot maintain the $31,500 level, the correction will likely continue.

Tone Vays tweeted:

“#Bitcoin has just started a very critical 4th day of the 1-4 day correction from the MRI Top on Jan 10th. As long as we close above the blue line at $31,500 I would be looking for more upside into end of month. Closing below that line on 5th candle is trouble. $BTC”

As mentioned, so far Tone Vays’ analysis throughout this period has been spookily accurate and our own analysis also indicates a similar pattern below.

Bitcoin Price Analysis

The Bitcoin price drop is occurring in spite of the fact that funding rates on leading crypto-asset futures platforms have reset.

The funding rate is the reoccurring fee that long positions pay short positions to maintain the price of the future to the spot price. High funding rates, such as those seen on Saturday, was a major signaled a BTC price correction was coming.

In the daily chart below, there is a dead cross appearing on the MACD indicator, if we lose the 31k support it is likely that we will have another Bitcoin price flash crash below the $30k area. However, it appears to have a 50/50 likelihood of occurring due to the continued strong Bitcoin buying pressure from institutions.

The BTC price is trading near the trend line support, if the support breaks and we have a 4-hr candle closing below it. It is expected the price of BTC will suffer from further loss to below 30k level.

XRP Price Stable As Grayscale Plans to Dissolve XRP Trust Closing Investment Avenue for Institutions, But Why?

Despite the fact that institutional-grade digital asset firm Grayscale has announced it will dissolve its XRP Trust as the United States Securities and Exchange Commission (SEC) pursues its lawsuit against Ripple, the XRP price did not suffer a further price plunge and instead stabilized—even making a slight gain. But why?

One major reason for the XRP token’s continues price stability is that the Financial Services Agency (FSA) has today asserted that XRP does not meet the definition of a security under Japanese law. Though it does not alter the SEC’s current litigation against Ripple Labs, it’s a good demonstration that there is a lack of consensus even between the regulators themselves. It is definitely great news for XRP investors.

Meanwhile, many cryptocurrency exchanges have moved to delist the token in fear of the repercussions the lawsuit may mean for their platform. This includes Coinbase, Bitstamp, and Binance US. This may create a huge hindrance for people who want to buy XRP, but at the same time, it also makes it harder for people to sell it. Most people must have dumped their XRP tokens after the rumors that the crypto exchanges are going to delist the coin.

When the SFC news was released, the selling pressure was overwhelming, causing the XRP price to plunge to 0.17 but afterward, it rebounded quickly to $0.30. The worst may have already happened, and when there was a huge selling panic among the cryptocurrency community, it was proven to be the best time to buy.

Source: XRP/USD 1D TradingView

XRP price is currently trading at the 0.29 level and it is expected to trade in the triangle drawn in the chart before a breakout. If it breaks upwards, the next resistance level is located at $0.4 area. If it breaks downwards, the $0.226 level appears to be the level that will provide enough support for XRP to hold its price and get a decent bounce off the support.

Source: XRP/USD 1D TradingView

If the XRP price breaks upwards, the XRP’s first target will be the 0.382 Fib retracement level at 0.4 or even 0.5 Fib retracement level which is located at $0.48.

XRP is currently trading at $0.29 at the time of writing and despite the news of Grayscale Investments dissolving the XRP Trust breaking across the crypto markets, the Ripple associated token is only down 1% in the last 24 hours. XRP may be down but it does not yet appear to be out.