HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Why This Analyst Expects Bitcoin Price Consolidation After the Recent 15% Drop

Bitcoin 2021/01/16 06:10 by Nick Chong

Bitcoin faced a strong drop into Friday. The cryptocurrency, after peaking at $40,000, fell as low as $34,000 in a flash drop on Friday morning.

The drop was odd because the cryptocurrency was strongly underperforming altcoins. Normally, during Bitcoin corrections, altcoins fall against the U.S. dollar and against BTC, though this was not the case.

Bitcoin has since bounced back toward $36,500 since the daily lows.

An analyst is expecting some form of consolidation in the days ahead, which may result in strength in the altcoin market.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

Bitcoin Could Enter Consolidation, Analyst Predicts

One crypto-asset analyst recently suggested that Bitcoin has a good likelihood of consolidating in the short term, which could end up resulting in an altcoin rally.

He shared the chart below on Friday, showing Bitcoin’s potential outlook ahead of the weekend. The chart shows that BTC is currently rubbing up against a key support level and against a number of key moving averages. This formation led him to suggest that the cryptocurrency will end up consolidating throughout the weekend.

As the trader 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 in a bullish manner, it is argued that that is a prime time for altcoins to break out.

Image

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
Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Altcoin Rally Begins

What the analyst predicted appears to be playing out in real time.

As of this article’s writing, leading altcoins are starting to break higher in a serious fashion, largely leaving Bitcoin in the dust. The BTC dominance metric has dropped from 67.5% to 66.5% over the past day, which is notable in a market worth over $1 trillion.

Altcoins such as Curve DAO Token (CRV), Aave (AAVE), Chainlink (LINK), and many more are surging higher as Bitcoin enters some form of consolidation.

This trend is likely to continue as long as BTC respects key support levels in the near term.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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

0 Like(s)



You should also read...

Bitcoin 28/06/20 00:00 by Nick Chong
It May Take Bitcoin Until Q4 2020 to Break Into a Bull Market: Analyst
There have been many optimistic Bitcoin traders that have been expecting an imminent break into a bull market. Yet an analyst has said that it may be until the end of 2020 that the cryptocurrency mark...
Read More
Altcoins 05/07/20 12:00 by Nick Chong
Macro Cardano (ADA) Chart “Highly Suggests” the Bull Run Is Over: Analyst
Despite the rhetoric on Twitter, holding Bitcoin has actually not been the best crypto investment of 2020 thus far. The chart below shared by a cryptocurrency data analyst is a perfect case in point. ...
Read More
Other 05/08/20 12:00 by Nick Chong
After Ripping Past $3, Analysts Think Tezos (XTZ) Has Room to Rally
Like Chainlink and other altcoins, Tezos (XTZ) has done extremely well over recent days despite the weekend’s flash crash. On Tuesday, the popular cryptocurrency was up more than 9% on the day a...
Read More
Other 09/08/20 22:30 by Nick Chong
Analysts Expect Parabolic Tezos (XTZ) Rally as Price Passes Above $3.40
Tezos (XTZ) is breaking out despite stagnation in the prices of Bitcoin, Ethereum, and other leading major cryptocurrencies. The price of the community-favorite altcoin is up 10% in the past 24 hours,...
Read More
Bitcoin 25/08/20 22:00 by Tony Spilotro
Buy Crypto: Search Term Spikes To Highest Point Since Bitcoin Bubble
Google Trends can be a helpful tool to watch to spot sudden changes in crypto market sentiment. For example, searches for Bitcoin peaked back in 2017 when the asset ballooned to $20,000 before the bub...
Read More