- Bitcoin reached the $28,400 mark yesterday, but then showed a sharp correction to $25,700.
- Experts expect the price to rise further to $30,000, but then expect a correction that could last several weeks.
Bitcoin has continued the upward trend of recent weeks and yesterday rose to a new historic all-time high of $28,422. This was followed by a correction to $25,700. However, BTC was able to recover at the time of writing and now stands at $27,130. This means that the price has fallen by 2.33% in the last 24 hours. The market capitalization is $503 billion.
Blockroots founder and Bitcoin trader Josh Rager states that Bitcoin’s price rise is slowly becoming parabolic, making the price surge too fast and unnatural. In his opinion, Bitcoin can reach the $30,000 mark in the near future, but this will probably be followed by an extended correction over several weeks, at least this would be healthy for Bitcoin and the crypto market.
Looks like Bitcoin can still go higher but starting to get a little parabolic ($9k to $27k)
I think we could see $30k but a pullback and some sideways will eventually come for a few weeks
The next peak high is still months away – but the journey is day by day pic.twitter.com/XWssePhWmL
— Josh Rager 📈 (@Josh_Rager) December 27, 2020
Other analysts such as“CRYPTO₿IRB” forecast that Bitcoin can even crack the $30,000 mark by the end of this year. Nevertheless, traders should be cautious, as volatility is currently higher than ever before and a correction of several thousand USD per day is no longer uncommon. However, the analyst also states that the current phase offers great profit opportunities for day traders.
— CRYPTO₿IRB (@crypto_birb) December 28, 2020
“Big Chonis Trading” shows on a yearly chart that Bitcoin has to close above the $26,968 mark by the end of the year, and after that BTC has “all possibilities” to surge to new all time-highs. He is bullish on Bitcoin, but he also expects an extensive correction after Bitcoin tests the $30,000 level. If Bitcoin continues to rise, this would be too steep a rise, bringing the market into an overbought zone.
$BTC – notable back-test of this line… a line that held 2015-2018, briefly regained in 2019 and just retested now at the end of 2020… closing above opens up all sorts of possibility's for #bitcoin price discovery pic.twitter.com/D9I0y2ZwBg
— Big Chonis Trading🍄 (@BigChonis) December 27, 2020
Bitcoin’s huge price rise from $23,500 to more than $27,000 has created the largest ever “CME Gap” on the Chicago Mercantile Exchange (CME), which is why trading has been paused. These price gaps occur when the closing price before a weekend or holiday is significantly higher or lower than the opening price. The CME Gap of the last few days is the largest in Bitcoin’s history and could be closed soon.
Is it a bird, is it a plane? No, it's Bitcoin futures CME halting because of biggest gap ever. pic.twitter.com/SUgzowKsTE
— zender 🟨⬛ Taproot by BIP8 (@zndtoshi) December 27, 2020
Gaps have almost always been closed in the past, so it is likely that a correction could follow in the next few days to close the gap. However, whether this happens promptly or becomes part of the extensive correction after testing the $30,000 mark remains to be seen for now.
Donald Trump releases stimulus package after all
After Trump had last vetoed the stimulus package, he gave his OK a few hours ago after all, paving the way for a further stimulus for the bitcoin price. The new aid package frees up fresh capital for private investors and companies, which investors could use to invest in BTC.