The price of Bitcoin (BTC) has risen sharply in the past few months, from $10,000 to a recent historical high of about $24,000. It rose more than 135% in just a few months.
It is speculation to discuss the trend of Bitcoin’s price after reaching $24,000. However, this round of rising must be maintained at a certain level to continue. In addition, some indicators help to analyze charts and predict areas of potential interest for price discovery.
If you hold $24,000, it may continue to rise to $25,800
BTC/USD 1-day chart Source: TradingView
Bitcoin’s daily chart shows that Bitcoin broke through $19,500. This rally caused $23,500 to become a temporary top and $19,500 to become a key support level.
The chart also shows that a clear support/resistance level flip of $16,000 triggered further upward pressure, causing Bitcoin to break through $19,500. According to the daily time frame, the recent minimum level is around $17,500. As long as Bitcoin stays above this level, the upward trend will not be affected and may continue.
Fibonacci is useful for discovering the potential short-term top of this rise. The first Fibonacci level was at $22,100, which has been surpassed. This means that the market is currently facing huge buying pressure.
The next point of interest is at $25,800, and this level may mark the next potential top.
This vertical rise will not last long. Therefore, the callback will happen at some point. However, predicting when it will happen is everyone’s guess, because Bitcoin may easily rise to $30,000 and then get a 30% correction.
The total market value of cryptocurrencies continues to climb
1-week chart of the total market value of cryptocurrencies Source: TradingView
The total market value of cryptocurrencies has risen sharply in the past few months, mainly driven by Bitcoin’s record highs.
Following in the footsteps of BTC, the total market value of cryptocurrencies is approaching the final obstacle before entering the price discovery stage.
Just like Bitcoin, there are some important levels to pay attention to in case the total market value pulls back. The first level is about 550 billion US dollars, which can be used as a support level for the callback. If it is not possible to hold $550 billion, the next level will be between $435 billion and $445 billion, and then $380 billion.
Are altcoins finally starting to perform?
1 week chart of Bitcoin dominance Source: TradingView
Historically, Bitcoin’s dominance reached its peak in December, after which altcoins will usher in a strong quarter.
In order for altcoins to perform strongly in the next quarter, Bitcoin must be corrected and stabilized, because this is the best way to enhance the performance of altcoins. Therefore, history tells us that the next quarter may be an important quarter for altcoins.
Bitcoin short-term outlook
BTC / USDT 1 week chart Source: TradingView
Bitcoin’s weekly chart shows that Bitcoin has experienced a sharp vertical rise in the first few months. Normally, this rise will end with a sharp correction as it did three years ago.
As mentioned earlier, no one knows when this big correction will happen. Bitcoin may continue to rise to $30,000 before it starts to correct. However, as shown in the chart, the main focus of this pullback is around $18,500.
As long as this level is maintained, Bitcoin and other cryptocurrencies may continue to climb, and the total market value of cryptocurrencies will enter the price discovery stage like BTC.
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