Currently BTC is discovering a price but a drop for the region of $18,500 in the short term should not be discarded.
If support remains at current levels Bitcoin may reach US$25,000 before 2021
The price of Bitcoin (BTC) has seen a massive rise in previous months, accelerating from $10,000 to a recent high of about $23,700. It is a high of 135% in a matter of a few months.
It is speculative to discuss where the price of Financial Peak could be executed from here. However, certain levels must be maintained for this high to continue. In addition, several indicators can be useful to analyze the charts and anticipate potential areas of interest in price discovery.
It is likely that the high will continue up to $25,800 if this level is maintained
The daily chart for Bitcoin shows a massive break over $19,500. This recovery led to a temporary top of $23,500, but automatically turned the $19,500 level into a critical level to maintain.
The graph also shows a clear shift in support/resistance from the $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 setting the rally’s short term top potential. The first Fibonacci level is the $22,100 Fibonacci extension. This means the market is witnessing immense buying pressure.
The next level of interest is found at $25,800, the Fibonacci level 2,618, which could be the next marker for a possible top.
These high verticals are not sustainable for long. Therefore, a correction will occur at some point. However, predicting when this will happen is an unknown, as Bitcoin can easily reach $30,000 and then have a 30% correction.
Total market capitalization continues to rise
The total market capitalization 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 capitalization 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 support the downturn. If this does not continue, the next levels are $435-$445 billion and $380 billion.
Are the altcoins finally starting to work?
Historically, Bitcoin’s dominance reaches its peak in December, after which a strong quarter for altcoins begins.
To have such a strong quarter for altcoins, Bitcoin needs to correct and stabilize, because 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
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. 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 with the total market capitalization of cryptomedas going into price discovery.
The views and opinions expressed here are those of the author alone and do not necessarily reflect the views of the Cointelegraph. Every investment and trading movement involves risk. You should conduct your own research when making a decision.