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.