The world’s largest cryptocurrency, Bitcoin, has witnessed a massive rally in previous months. It accelerated from $10,000 to a recent lifetime high of nearly $23,700. It took only a few months for Bitcoin to increase by 135%.
On December 21, the dominant cryptocurrency lost $23,000 support. Monday trading witnessed a long-awaited correction. It began to take shape as U.S. futures also dipped by approximately 2.5% on concerns about the new virus strain in the United Kingdom.
According to the latest data, Bitcoin saw a decline to $22,410 after all-time highs. Significantly, it fell by approximately 3.3% during 24 hours.
Significantly, at the start of last week, Bitcoin was still at under $19,500. This level, which Cointelegraph Markets analyst Michaël van de Poppe considers, could form a short-term price target.
Additionally, other primary altcoin tokens also witnessed declines; for example, Ether declined by 6% during the day, Litecon fell by 8.5%, and XRP eased by 7.4% and settled at $0.53.
BTC’s certain levels must be maintained for this rally to resume
It is interesting where the price of Bitcoin could run from here. However, certain levels must be maintained for this rally to resume. Additionally, several signs can help analyze the charts and forecast potential areas of interest in price discovery.
Additionally, cryptocurrency’s total market capitalization saw a massive upward breakout in the previous months. Since BTC reached its new all-time high, it fueled the breakout. Another essential thing to mention is that the total market cap is approaching the final hurdle before price discovery.
Just like Bitcoin, there are critical levels to watch for a potential correction. The first level is around $550 billion, which could support the pullback. If that does not hold, the next levels are $435-$445 billion and $380 billion.
Furthermore, the weekly BTC chart presents a huge vertical run in the earlier months. Usually, it ends in a healthy correction, just like three years ago.
We all know that it is tough to determine when the significant pullback will occur.
The dominant cryptocurrency may resume running to $30,000 before it starts to correct. Still, the critical level to watch in this correction is the region around $18,500.
Significantly, as long as that level holds, BTC and other cryptocurrencies will likely keep rising with the total crypto market cap going into price discovery just like Bitcoin.