El Salvador President Nayib Bukele took a victory lap on Monday after the Bank of England’s British pound rapidly depreciated against the dollar. The institution has since resumed quantitative easing. Its action marks a clear pivot that many in the Bitcoin community predicted central banks would be forced into months in advance. Bukele’s Callout Bukele tagged the Bank of England with a triumphant “Told you,” over Twitter, scoring over 14,000 like and 2000 retweets from his followers. His brief comment…
The year 2021 is off to a good start for Bitcoin (BTC), which has just crossed $30,000. After setting a new all-time high above $20,000, Bitcoin’s bullish push does not stop.
Bitcoin (BTC) Exceeds $30,000
Bitcoin has begun the New Year from where it left off in 2020 with an extended bullish run. The leading cryptocurrency today surpassed the $30k mark in a major rally in the past few hours. This latest milestone comes just two weeks after it broke its previous all-time high of $20,000.
From a fundamental point of view, the past few months have been a rollercoaster for the leading coin. Almost everything has been in its favor during this period, leading to a constant increase in demand and price. BTC volumes on exchanges are reaching new heights as institutions continue to purchase more bitcoins in recent weeks. Confidence in Bitcoin is at its apex, with several factors pushing the coin towards this colossal milestone.
The last days of 2020 were particularly prolific for Bitcoin as it closed each day with an exponential price rise. Most days, the coin increased by $500, and sometimes its price increased by as much as $1000. This has gradually continued into the New Year, with the latest symbolic bar of $30,000 reached on the second day of the New Year. In just 17 days, Bitcoin has witnessed an increase of more than 50% in its price from $20,000 to $30,000.
A Future Correction?
Either way, this rapid rise in Bitcoin is not very healthy. Many analysts point out that a consolidation of the price of Bitcoin is necessary for the uptrend to continue. This is because if the price continues making steep gains, a major correction could be massive and lead to huge losses for traders.
The move above $30k is, therefore, accompanied by uncertainty. There are fears that Bitcoin could retrace brutally. Thus caution is required during this period. Bitcoin dominance has also been peaking, with the leading coin currently leading with 71.5% of the total market cap. This is an important metric as it could trigger a single pullback in Bitcoin. Although we are in a bull-run, an asset’s price never goes up in a straight line indefinitely.
Since Bitcoin has been in the price discovery phase since it crossed above $ 20,000, no tangible support can be used as a reference in the event of a correction. The closest support is $ 20,000, Bitcoin’s former all-time high.