Just hours after forming a new all-time high at $34,780, the BTC price plummeted as low as $27,000 in a flash crash that caught many investors by surprise.
The flash sell-off came after the bulls just missed the $35K mark following a wild, bullish ride that picked up pace since the New Year weekend.
Since the flash crash earlier today, the BTC market has gained some composure, and BTCUSD is once again trading well above $30K.
BTCUSD Chart By TradingView
Despite the BTC price rebound, volatility levels are back at the highs seen in late-2017 when the market hit new highs before slumping. However, unlike the previous bull run that was primarily fuelled by speculative retail buyers, the current run has more bullish fundamentals, such as the rising bitcoin uptake by institutions.
Any Bitcoin Sell-Off Will Likely be Limited
Bitcoin is currently showing many positive signs above the $30K level as it trades at $31,112 during press time.
The recent dip and subsequent rebound mirror yesterday’s price action where the king coin traded below $30K before buyers quickly stepped in to buy the dip.
The rapid price recovery points to a latent bid for the flagship crypto that will appear on any dip. This buying pressure is mostly institutional, with major players such as Grayscale and SkyBridge Capital accounting for the latest significant capital influx into BTC.
Bitcoin must remain well supported above $31,500 to spark off a new rally in the coming sessions. Failure for the bulls to clear this level could lead to an extended downside correction, but any dips below $30K are likely to be limited.
ETH Price Pierces $1,100
The ETH price is rocketing higher as BTC stagnates in the lower-$31K region. The altcoin soared past $1000 in today’s early sessions and even pierced $1,100 after holding the $1K price level.
The ETHUSD pair has since corrected slightly lower but remains up nearly 40% in the past 24 hours.
ETH Price Storms To $1K | Source TradingView
This explosive price action has convinced one trader that ETH is headed for the moon, and could soon hit a new all-time high.
In his Jan 4th tweet, the analyst projected that ETH could soon rip through $2K, mostly since the market remains under-allocated to the second-largest digital asset.