Bitcoin recently released a so-called “blow-off top” as it soared to highs of $ 28,500 before facing an immediate rejection that dropped it to $ 26,000.
Support at this level has been significant and has proven to be a strong base that has since bounced back. Therefore, the possibility that his last leg higher is a bearish blow-off top appears to be invalid for now.
The consolidation trend in the aftermath of the recovery from recent lows has resulted in altcoin prices rising, with Ethereum leading the way as Bitcoin’s smaller counterparts try to hold their own.
Today, these rallies have generally paused, which could mean Bitcoin is on the verge of resuming its uptrend and rising significantly.
Believing this to be a realistic possibility, one trader notes that they are closely watching to see if the benchmark crypto can get a boost beyond the $ 28,000 region in the short term.
If that were to break the top soon it would open the gates for an explosive surge towards $ 30,000.
Altcoin Rebound pauses when Bitcoin starts blinking
At the time of writing, Bitcoin is trading just under 4% from its current price of $ 27,200. This is a remarkable increase from its recent lows of $ 26,000.
The strength that the cryptocurrency has seen since its high of $ 28,500 is impressive and may cause it to continue trending higher.
After the peak, its decline proved beneficial for altcoins as Ethereum shot above $ 700 and took away many other smaller cryptocurrencies.
However, as Bitcoin’s strength increases, most of these smaller altcoins are stagnating, which could suggest that BTC is about to move another leg higher.
Analyst: BTC clear for further uptrend as the altcoin rally stops
An analyst recently stated in a tweet that Bitcoin could be ready for a rally in the short term, with the pause in recent altcoin uptrends potentially leading to the next BTC rally.
“Even at 27,000, BTC still refuses to make a significant withdrawal or retest. If you’re looking for more upside potential, that goes well with ALT / BTC pairs taking a little break after the final jump, ”he said, pointing to the table below.
Courtesy of Cryptorangutang. Source: BTCUSD on TradingView.
It seems that the market is entering a phase where altcoins are inversely correlated to Bitcoin, which means that the proverbial “old season” may not begin until Bitcoin sees a longer period of consolidation.
Featured image from Unsplash. TradingView charts.
