Bitcoin suffered a sharp decline on Friday. The cryptocurrency fell to $ 34,000 in a flash after peaking at $ 40,000 on Friday morning.
The decline was strange given that the cryptocurrency underperformed heavily against altcoins. Typically, altcoins fall on Bitcoin corrections against the US dollar and against BTC, when they didn’t.
Bitcoin has risen back to $ 36,500 since the daily lows.
An analyst expects a consolidation in the coming days, which could lead to a strengthening of the altcoin market.
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Bitcoin could enter consolidation, analyst predicts
A crypto asset analyst recently suggested that Bitcoin has a good chance of consolidation in the short term, which could lead to an altcoin rally.
On Friday, he shared the following chart, showing Bitcoin’s potential outlook ahead of the weekend. The graph shows that BTC is currently rubbing against a key support level and against a number of key moving averages. This formation led him to suspect that the cryptocurrency will consolidate over the course of the weekend.
As the dealer explained:
“Here is the possible short-term result (12 noon to midnight) for #Bitcoin. 1) Consolidates while $ ETH / $ BTC is strong, 2) $ ETH / $ USDT takes the lead, 3) Kill Altcoins on the weekend, 4) Pay by 6pm Sunday, 5) Let Monday unfold. ”
When bitcoin consolidates bullish, it is argued that this is the best time for altcoins to break out.
Chart of the price development of BTC over the last few weeks with an analysis by crypto trader and chartist Pierre (@ Pierre_Crypt0 on Twitter). Source: BTCUSD from TradingView.com
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What the analyst predicted seems to be happening in real time.
At the time of this writing, leading altcoins are seriously starting to break higher, largely leaving Bitcoin in the dust. The BTC dominance metric fell from 67.5% to 66.5% over the past day, which is remarkable in a market valued at over $ 1 trillion.
Altcoins such as Curve DAO Token (CRV), Aave (AAVE), Chainlink (LINK) and many more will rise as Bitcoin enters some form of consolidation.
This trend is likely to continue as long as BTC holds key support levels in the short term.
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Featured Image from TradingView.com’s Unsplash Chart Price Tags: BTCUSD, XBTUSD, BTCUSDT, ETHUSD, ETHBTC, ETHUSDT Why This Analyst Expects Bitcoin Prices To Consolidate After The Recent 15% Drop
