- Bitcoin has seen some mixed price movements lately, with bulls and bears largely dead-end with the consolidation of the cryptocurrency
- Where the next trends lie will no doubt largely depend on whether bulls can break the current consolidation phase and trigger a move higher
- This will likely only happen if BTC can pour $ 40,000 into support, as this has proven to be an intense level of resistance
- During a conversation about BTC’s price performance, an analyst stated that it is currently trapped in a relatively large pennant
- As such, it expects further consolidation in the near future, which will allow Altcoins to rebound
Bitcoin has struggled to achieve clear momentum lately as the price movement of the cryptocurrency consists mostly of area-based trading between $ 30,000 and $ 40,000.
This large trading range has held up strong over the past few weeks and any attempt to cross any of the limits has resulted in swift rejections.
Where, in the medium term, market trends are likely to depend largely – if not entirely – on whether or not bulls can continue to protect themselves from collapse.
A trader expects further sideways trade in the medium term and assumes that this will turn out to be bullish for altcoins.
Bitcoin continues to consolidate as bulls struggle to trigger a breakout
At the time of writing, Bitcoin is trading just under 2% at its current price of $ 36,400. This is a notable drop from the crypto overnight highs of $ 37,500 set when bulls tried to take control of their price moves.
The selling pressures at these highs suggests resistance in the upper $ 30,000 region, but also has equally strong support in the lower $ 30,000 region.
How it reacts to these levels in the coming weeks should shed some light on its near-term outlook.
Altcoins can fly if BTC continues to consolidate
One analyst stated that he believes Bitcoin will continue to consolidate until it dissolves a large pennant formation it is currently in.
This could prove incredibly bullish for altcoins, he claims.
“BTC 4H: Bitcoin is still in this pennant. This consolidation is very good for altcoins. I’ll trade alts heavily as long as we stay in the triangle. “
Image courtesy SilverBullet. Source: BTCUSD on TradingView.
Assuming this pennant leads to an upward breakout, Bitcoin could regain some of its market dominance that Altcoins have taken over the past few days and weeks.
Featured image from Unsplash. TradingView charts.