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Bitcoin may hit $25,800 after a pullback within the year

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Bitcoin is currently in a price discovery phase, but a drop to $18,500 in the short term cannot be ruled out.

Original title: "Analysis: Bitcoin price may reach $25,800 before 2021, but may pull back in the short term"

Original source: Cointelegraph Chinese

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Bitcoin is currently in a price discovery phase, but a short-term drop to $18,500 is not ruled out.

Bitcoin (BTC) price in previous months There was a sharp rise, from $10,000 to a recent all-time high of around $24,000. Up more than 135% in just a few months.

Discussion of Bitcoin's price behavior after reaching $24,000 is speculation. However, this round of gains must be maintained at a certain level to continue. Additionally, several indicators help to analyze charts and predict potential areas of interest for price discovery.

If $24,000 holds, a continuation to $25,800 is possible.

Bitcoin's daily chart shows that Bitcoin broke through $19,500. The uptick resulted in $23,500 as a temporary top and turned $19,500 into a key support level.

The chart also shows that a flip of a clear support/resistance level at $16,000 triggered further upward pressure, leading Bitcoin to break above $19,500. According to the daily time frame, the recent minimum was around $17,500. As long as Bitcoin remains above this level, the uptrend is unaffected and likely to continue.

Fibonacci is useful for spotting potential short-term tops for this rally. The first Fibonacci level was at $22,100, which has been surpassed. This means that the market is currently under significant buying pressure.

The next point of interest is at $25,800, a level that could mark the next potential top.

This vertical rise will not last long. So the callback will happen at some point. However, predicting when that will happen is everyone’s guess as Bitcoin could easily go up to $30K and then get a 30% correction.

The total market capitalization of cryptocurrencies continues to climb

The total market capitalization of cryptocurrencies in previous months There has been a big uptick, mostly from bitcoin hitting historical Driven by new highs.

Following in the footsteps of BTC, the total cryptocurrency market capitalization is approaching the final hurdle before entering the price discovery phase.

Just like Bitcoin, there are some important levels to watch in case the total market cap pulls back. The first level is around $550 billion and could act as support for a pullback. If $550 billion cannot be held, the next level would be between $435 billion and $445 billion, and then $380 billion.

Are altcoins finally starting to perform?

Historically, Bitcoin’s Dominance peaked in December, after which the altcoin is set for a strong quarter.

In order for altcoins to perform strongly in the next quarter, Bitcoin must correct and remain stable, because this is the best way to strengthen the performance of altcoins. Therefore, history tells us that the next quarter could be a big one for altcoins.

Bitcoin short-term outlook

Bitcoin weekly chart shows Bitcoin ahead There have been months of sharp vertical advances that typically end in sharp corrections like they did three years ago.

As mentioned earlier, no one knows when this big pullback will happen. Bitcoin may continue to rise to $30,000 before starting a correction. However, as the chart shows, the main level of concern for this pullback is around $18,500.

As long as this level is maintained, bitcoin and other cryptocurrencies Both are likely to continue to climb, and the total market capitalization of cryptocurrencies will enter a price discovery phase like BTC.