Bitcoin faced a sharp decline in Friday. The cryptocurrency, after peaking at $ 40,000, fell to $ 34,000 in a flash Friday morning.
The decline was strange as the cryptocurrency underperformed altcoins. Normally during Bitcoin corrections, altcoins fall against the US dollar and against BTC, although this was not the case.
Bitcoin has since rebounded to $ 36,500 since its daily lows.
An analyst expects some form of consolidation in the coming days, which could result in strength in the altcoin market.
Bitcoin could consolidate, analyst predicts
A crypto asset analyst recently suggested that Bitcoin has a good chance of consolidating in the short term, which could result in a altcoin rally.
He shared the chart below on Friday, showing Bitcoin’s potential outlook for the weekend. The chart shows that BTC is currently hitting a key support level and some key moving averages. This formation led him to suggest that the cryptocurrency will consolidate throughout the weekend.
As a trader explained:
“Here is the possible short term outcome (12-24 hours) for #Bitcoin. 1) Consolidates while $ ETH / $ BTC is strong, 2) $ ETH / $ USDT takes charge, 3) Kill altcoins over the weekend, 4) Pay yourself by 6pm Sunday, 5) Let the Monday unfold. “
When Bitcoin consolidates in a bullish fashion, it is claimed to be prime time for altcoins to break out.
Chart of BTC's price action over the past few weeks with an analysis by crypto trader and chartiist Pierre (@Pierre_Crypt0 on Twitter). Source: BTCUSD from TradingView.com
What the analyst predicted appears to be happening in real time.
As of the writing of this article, leading altcoins are starting to break higher in a serious way, leaving Bitcoin largely in the dust. BTC dominance has dropped from 67.5% to 66.5% in the past day, which is remarkable in a market worth more than $ 1 trillion.
Altcoins like Curve DAO Token (CRV), Aave (AAVE), Chainlink (LINK) and many more are rising as Bitcoin enters some form of consolidation.
This trend is likely to continue as long as BTC respects key short-term support levels.
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Growing
Featured Image from Unsplash Chart from TradingView.com Price Tags: BTCUSD, XBTUSD, BTCUSDT, ETHUSD, ETHBTC, ETHUSDT Why This Analyst Expects Bitcoin Price Consolidation After the Recent 15% Drop