Bitcoin recently posted what is commonly described as a so-called “blow-off top,” when it soared to a high of $ 28,500 before being immediately rejected, dropping to $ 26,000.

Support at this level has been significant and has proven to be a strong foundation that has since rebounded. As such, the possibility that his latest leg up is a bearish blow-off top seems invalid for now.

The consolidation trend following the recovery from the recent lows has led to a sharp rise altcoin prices, with Ethereum leading the way as Bitcoin’s smaller peers try to gain ground against it.

Today, these rallies have generally taken a pause, which could mean Bitcoin is on the verge of resuming its uptrend and rising significantly higher.

One trader thinks this is a realistic possibility and notes that he is watching closely to see if the benchmark crypto can move past the mid $ 28,000 mark in the near term.

If this were to be broken soon, it would open the gates for a boom to $ 30,000.

Altcoin Rebound pauses when Bitcoin starts flashing

At the time of writing, Bitcoin is trading just under 4% at the current price of $ 27,200. This marks a notable rise from the recent lows of USD 26,000.

The strength the cryptocurrency has seen since it peaked at $ 28,500 is impressive and may lead it to continue to see upside potential.

After a spike, the decline turned out to be beneficial for altcoins, with Ethereum skyrocketing past $ 700 and taking many other smaller cryptocurrencies.

As Bitcoin’s strength grows, most of these smaller altcoins are seeing stagnation, which could mean that BTC is about to move up a new leg.

Analyst: BTC clear for further upside if Altcoin Rally Stalls

An analyst explained in a recent tweet that Bitcoin could be rally ready in the near term, with the pause in the recent altcoin uptrends potentially triggering the next BTC rally.

“Even at 27k, BTC still refuses to give a significant relapse or retest. It looks good for more benefits and would suit ALT / BTC pairs taking a little break after the recent jump, ”he said pointing to the chart below.


Image Courtesy Cryptorangutang. Source: BTCUSD on TradingView.

It appears that the market is entering a phase where altcoins are inversely related to Bitcoin, meaning that the proverbial “altseason” may not begin until Bitcoin sees a protracted consolidation phase.

Featured image from Unsplash.
Charts from TradingView.

Source link