Bitcoin has been on a mental ride over the last few days, smashing its way to a fresh all-time high.
However, after great movement like we saw over the Christmas weekend, it’s time for Bitcoin to cool off and retrace a bit.
This will present a fresh buying opportunity and a great chance for people who sold at the top to get back in and prepare for the next all-time high in a few days’ time.
A New ATH on the Cards
Bitcoin smashed to its latest ATH on December 27, reaching a price of $28,336.00. Since then, Bitcoin has fallen significantly, and is now trading at around $26,700.
This might fall from grace, however, is a necessary step in the Bitcoin price cycle, with its serving as a nice retracement level.
As you can see from the chart, Bitcoin is in a small descending channel, which means that Bitcoin has the potential to slide quite a bit more before it breaks free.
If this hourly channel stands pat, we could see Bitcoin close out the day as low as $25,600, which would be an epic price to buy in at.
The lower line of the channel serves as the support indicator, and Bitcoin has been bouncing nicely off of it.
However, it has tested the upper line of the channel and it was rejected almost instantly, suggesting that it could require a hefty nudge to break free and make its way on to $30,000.
Bitcoin is currently sat in the middle of the channel after bouncing off the support line earlier this morning.
But, this movement looks like it could be about to fizzle out, meaning the support will be used at least one more time.
If the support level can hold fast and provide a nice launchpad, Bitcoin should break through the resistance at the top of the channel and resume its course for $30,000.
A New ATH For the New Year?
With the way Bitcoin has been going over the past few weeks, we certainly can’t rule out the possibility of a new ATH before we get to 2021.
If Bitcoin can bounce off the support level of this channel with some ferocity, we could even see Bitcoin reach a new ATH before the end of Wednesday.
It all depends on how strong the bounce is off the support, with positive news and FOMO all needing to kick in if Bitcoin is to clear the $30,000 mark before the strike of midnight on New Year’s Eve.
Back in August we predicted $19,000 for January 2021, and it looks like our prediction was a little small.
If we can see $35,000 by the end of January, then Bitcoin will be well on track for breaking the $50,000 mark before Easter.
This would be huge for the Bitcoin world and would set up the bull run to take Bitcoin to crazy levels over the course of this two-year bullish market.
If history is any indicator, we could see 6-digit sums for Bitcoin by the end of this bullish cycle.
Let’s cross our fingers!