Bitcoin & Ethereum Market Analysis – 01.01.2021

The current BTC bull market is showing no signs of letting up, having wiped out the $28,500 resistance with a high-volume surge and giving no hint of a deeper reversal under $30,000.

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

Given that Bitcoin price has rallied 64.9% since the start of December, hitting the psychological $30,000 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.

The Altcoins primary indicator-Ethereum is currently attempting to push and sustain the ETH above the $740 resistance and resume the uptrend. This bullish view will be invalidated if the price dips and sustains below the 10 day MA. Ethereum might become the beneficiary of BTC bullish momentum. In overall, most Altcoins are in the downward trend right now.

Looking at the BTC daily chart,  If the bulls succeed in defending 20000$ support during the next major correction, it will act as a new floor. That is likely to prepare the Bitcoin for the next leg of the uptrend. A strong bounce off $20,000 level will open up the possibility of a rise to $30,000 and then to the next likely formidable resistance at $37,000.

Contrary to the bullish assumption, if the bears sink and sustain the price below $20,000 during the next correction, the price may extend its decline further to $15,950. The deeper the fall below $20,000, the longer it could take for the uptrend to resume.