Bitcoin price can hit $ 25,000 before 2021 if this important level of support applies

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The price of Bitcoin (BTC) has increased massively in the past few months, accelerating from USD 10,000 to an all-time high of around USD 23,700. This is a 135% rally in just a few months.

It is speculative to discuss where the price of Bitcoin could run from here. However, certain levels must be met for this rally to continue. In addition, several indicators can be helpful in analyzing the graphs and anticipating potential areas of interest for pricing.

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The continuation is expected to be $ 25,800 when this level applies

BTC / USD 1-day chart. Source: TradingView

The daily chart for Bitcoin shows a massive breakout above $ 19,500. This rally resulted in a temporary high of $ 23,500, but automatically turned the $ 19,500 level into a critical level.

The chart also shows a significant support / resistance flip from the $ 16,000 level, triggering further upside pressure leading to the breakout. Based on the daily timeframe, the most recent higher low is around $ 17,500. As long as Bitcoin stays above this level, the uptrend is intact and a continuation is likely.

The Fibonacci extension tool is useful for defining the potential short-term peak of the rally. The first level of Fibonacci is the 1,618 Fibonacci expansion with $ 22,100 which was surpassed. This means that the market is currently facing immense buying pressure.

The next level of interest is at $ 25,800, the Fibonacci level of 2.618 which could be the next marker for a potential top.

Such vertical rallies are not sustainable for long. So at some point a correction will occur. However, the prediction of when this will happen is unclear as Bitcoin can easily soar to $ 30,000 and then see a 30% correction.

The total market capitalization continues to rise

Cryptocurrency with total market capitalization 1-week chart. Source: TradingView

The total market capitalization of the cryptocurrency has shown a massive upward trend in the past few months, mainly due to the fact that Bitcoin has reached its new highs.

In the footsteps of BTC, the total market capitalization is now approaching the final hurdle before pricing begins.

Just like with Bitcoin, there are important levels to watch out for for a possible correction. The first amount is around $ 550 billion that could serve as support for the withdrawal. If not, the next levels are $ 435 billion to $ 445 billion and $ 380 billion.

Are altcoins finally starting to run?

Bitcoin Dominance 1 week chart. Source: TradingView

Historically, Bitcoin dominance is highest in December. After that, a strong quarter for altcoins begins.

To have such a strong quarter for altcoins, Bitcoin needs to correct and stabilize as this is the best type for altcoins. Therefore, as history shows, the next quarter could be a significant quarter for altcoins.

Bitcoin short term outlook

BTC / USDT 1 week chart. Source: TradingView

The weekly Bitcoin chart shows a massive vertical run over the past few months, which, like three years ago, often leads to a sharp correction.