BTC is currently discovering a price, but a drop for the region of US$18,500 in the short term should not be ruled out.
If support remains at current levels Bitcoin may reach $25,000 before 2021 PRICE ANALYSIS
The price of Bitcoin (BTC) has risen massively in previous months, accelerating from US$10,000 to a recent high of around US$23,700. This is a rise of 135% in a matter of a few months.
It is speculative to discuss where the price of Bitcoin could be executed from here. However, certain levels must be maintained if this rise is to continue. In addition, several indicators can be useful to analyze the charts and anticipate potential areas of interest in price discovery.
The high is likely to continue up to US$25,800 if this level is maintained
Daily BTC/USD chart. Source: TradingView
The daily chart for Bitcoin shows a massive drop above $19,500. This recovery led to a temporary top of US$23,500, but automatically transformed the US$19,500 level into a critical level to maintain.
The graph also shows a clear shift in support/resistance from the US$16,000 level, triggering even more upward pressure, leading to the break. Based on the daily schedule, the most recent low is around $17,500. As long as Bitcoin remains above this level, the uptrend will be intact and continuation is likely.
The Fibonacci extension tool is useful for defining the rally’s short term top potential. The first Fibonacci level is the $22,100 Fibonacci extension. This means that the market is witnessing immense buying pressure.
The next level of interest is found at US$25,800, the Fibonacci level 2,618, which could be the next marker for a possible top.
These high verticals are not sustainable Bitcoin Up reviews for long. Therefore, a correction will occur at some point. However, predicting when this will happen is unknown, as Bitcoin can easily reach $30,000 and then have a 30% correction.
Total market capitalization continues to rise
Weekly chart of total market capitalisation of cryptomaps. Source: TradingView
The total market capitalisation of cryptomeda shows a big break up in the previous months, largely fed by Bitcoin reaching its new historical highs.
Following in BTC’s footsteps, total market capitalisation is now approaching the final hurdle before entering price discovery.
Like Bitcoin, there are important levels to be observed for a possible correction. The first is around $550 billion, which could underpin the downturn. If this does not continue, the next levels are $435-$445 billion and $380 billion.
Are the altcoins finally starting to work?
1-week chart of Bitcoin dominance. Source: TradingView
Historically, Bitcoin’s dominance reaches its peak in December, after which a strong quarter for the altcoins begins.
To have such a strong quarter for altcoins, Bitcoin needs to correct and stabilise, as that is the best nature for altcoins to act. Therefore, as history shows us, the next quarter can be a significant quarter for the altcoins.
Bitcoin’s short-term perspective
One-week BTC/USDT chart. Source: TradingView
The weekly Bitcoin chart shows a massive vertical run in the previous months, which often ends in a violent correction, as it did three years ago.
As has already been said, no one knows when this major setback will occur. The Bitcoin can continue to reach $30,000 before it starts to be corrected. However, the primary level to be observed in this correction is the region around $18,500, as the chart shows.
As long as this level is maintained, Bitcoin and altcoins will likely continue to rise as total market capitalization of cryptomorphs goes into price discovery.