One analyst expects BTC’s price to consolidate after the recent 15% drop, as it peaked $40,000 and fell as low as $34,000 on Friday morning. In today’s Bitcoin news, we are taking a closer look at the price analysis.
The drop was weird because the cryptocurrency was so strongly underperforming altcoins but while the BTC corrections lasted, altcoins fell against the US dollar and also against BTC but this was not the case this time. BTC has bounced back since towards $36,500. One analyst expected a form of consolidation in the days ahead which could result in strength in the altcoin market. One crypto-asset analyst expects BTC’s price to see a consolidation in the short-term which could result in a new altcoin rally. He shared a chart showing Bitcoin’s potential outlook ahead of the weekend and the charts show that the cryptocurrency is now going near a key support level against a number of key moving averages which led him to suggest that the cryptocurrency will end up consolidating over the weekend, as he explained:
“Here’s the possible outcome short term (12-24h) for #Bitcoin. 1) Consolidates while $ETH / $BTC is strong, 2) $ETH / $USDT takes the lead, 3) Slay altcoins over the weekend, 4) Pay yourself by Sunday 6pm, 5) Let Monday unfold.”
When Bitcoin consolidates bullishly, it is believed that this is the prime time for altcoins to break out. What the analyst predicted seems to be playing out in real-time. as of the time of writing, the leading altcoins are starting to shoot higher and leaving BTC in the dust. The BTC dominance metric dropped from 67.5% to 66% in the past day which is market worth of over $1 trillion. Altcoins like Aave, Chainlink, Curve DAO, and more, are having a hard time increasing as BTC entered a form of consolidation. The trend will continue higher as long as BTC respects the key support in the near-term.
As reported earlier today, The cryptocurrency didn’t make an attempt to break above $40,000 a day ago but the selling pressure was so strong and sparked a rejection. Its price has dropped to $35,000 which got the bulls trying to slow the descent and to spark a rebound.