Bitcoin Price Analysis — January 1

Bitcoin (BTC) has been on a roll for the past few days. Following a recent recovery from a drop to the $26k level, the benchmark cryptocurrency rebounded dramatically, snapping the $29k barrier and recording a new ATH around $29,300 some days ago.

However, on the last day of 2020, bears gained control and forced BTC below $28,000. Bulls were quick to use this dip as another rebounding opportunity and initiated a massive leg higher in the ensuing hours at the dawn of the new year. This rally saw the cryptocurrency print a fresh ATH at $29,685.

Santiment, a crypto analytics firm, noted that the rapidly-growing number of daily active addresses on the Bitcoin network was one of the most supporting factors for the primary cryptocurrency’s recent bull run. The firm highlighted that daily active addresses are directly intertwined with Bitcoin’s price performance.

Meanwhile, most of the top Altcoins remained relatively unchanged over the past 24 hours, despite BTC’s crazy rally. However, Polkadot (DOT) continued with its aggressively bullish performance, as the cryptocurrency recorded a new all-time high at $9.5.

Also, despite the saga that trailed it in December and massive price drops, Ripple (XRP) has recorded a healthy performance today after climbing by about 10% a few hours ago. Nonetheless, XRP is still 70% off from its pre-SEC lawsuit-induced crash.

Key BTC Levels to Watch — January 1

Bitcoin is proceeding just fine along our trendline. The cryptocurrency saw a dip to the $28.698 level an hour ago but bounced back immediately to the upper-$29k area. This price action is an indication that the trendline will hold in the coming hours and days, likely guaranteeing that BTC will soon touch the coveted $30k round figure.

That said, BTC is currently trading within a wedge, indicating that a sharp rally (either upwards or downwards) could occur soon.

Meanwhile, our key resistance levels are at $29,685, $30,000, and $30,300. While our key support levels are at $28,700, $28,000 and $27,500.

Total Market Capitalization: $770 billion

Bitcoin Market Capitalization: $543 billion

Bitcoin Dominance: 70.5%

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