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
“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.