The price of Bitcoin (BTC) has seen a huge rally in previous months, accelerating from $ 10,000 to an all-time high of around $ 23,700. This is a 135% rally in just a few months.
It is speculative to discuss where the price of Bitcoin might run from here. However, certain levels must be held for this rally to continue. In addition, several indicators can be useful for analyzing the charts and predicting potential areas of interest in price discovery.
Continuity is likely $ 25,800 if this level holds
The daily chart for Bitcoin shows a huge cut above $ 19,500. This rally resulted in a temporary high of $ 23,500 but turned the $ 19,500 level into an essential level to hold automatically.
The chart also shows a clear support / resistance flip from the $ 16,000 level, triggering further upward pressure leading to the cut. Based on the daily schedule, the recent high low is made at around $ 17,500. As long as Bitcoin maintains above that level, the uptrend is intact and is likely to continue.
The Fibonacci extension tool is useful to define the potential short-term peak of the rally. The first Fibonacci level is the Fibonacci 1.618 extension at $ 22,100, which has been surpassed. This means that the market is currently seeing a great deal of 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 potential peak.
Such vertical rallies are not sustainable for long. Therefore, a correction will occur at some point. However, anyone’s guess is to predict when it will happen because Bitcoin can easily run to $ 30,000 and then see a 30% correction.
Total market cap continues to climb
Total cryptocurrency market capitalization shows a huge upturn in the previous months, largely fueled by Bitcoin hitting its all-time highs.
Following in BTC’s footsteps, the total market cap is now approaching the final hurdle before price discovery.
Just like Bitcoin, there are important levels to watch for possible correction. The first is to be found at around $ 550 billion, which could serve as support for the disadvantaged. If that doesn’t hold, the next levels are $ 435- $ 445 billion and $ 380 billion.
Are altcoins finally starting to run?
Historically, Bitcoin’s dominance peaked in December, after which a strong quarter begins for altcoins.
To get such a strong quarter for altcoins, Bitcoin has to shrink and stabilize, as that is the best nature for altcoins to operate in. So, as history shows us, the next quarter could be a significant quarter for altcoins.
Bitcoin short-term outlook
The Bitcoin weekly chart shows a huge vertical run in the previous months, which often ends in a violent correction just like three years ago.
As has already been said, no one knows when this great disadvantage will occur. Bitcoin may continue to run to $ 30,000 before it starts to correct. However, the primary level to watch for in this correction is the region around $ 18,500, as the chart shows.
As long as that level holds, Bitcoin and other cryptocurrencies will likely continue to climb with the total crypto market cap going to find prices just like BTC.
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