Bitcoin recently posted what is widely described as a so-called “blow-off top” when it rallied to highs of $28,500 before facing an instant rejection that sent it tumbling down to $26,000.
The support at this level was significant and has proven to be a strong base it has since rebounded off. As such, the possibility of its latest leg higher being a bearish blow-off top appears to be invalid for the time being.
The consolidation trend seen in the time following its rebound from its recent lows has given rise to a surge in altcoin prices, with Ethereum leading the way as Bitcoin’s smaller peers try to gain ground against it.
Today these rallies have generally taken a pause, which could mean that Bitcoin is on the cusp of resuming its uptrend and surging significantly higher.
One trader thinks that this is a realistic possibility, noting that he is watching closely to see if the benchmark crypto can make a push past the mid-$28,000 region in the near-term.
If broken above anytime soon, this would open the gates for an explosive surge towards $30,000.
Altcoin Rebound Pauses as Bitcoin Begins Flashing Strength
At the time of writing, Bitcoin is trading up just under 4% at its current price of $27,200. This marks a notable surge from recent lows of $26,000.
The strength that the cryptocurrency has seen since it peaked at $28,500 is impressive and may result in it seeing continued upside.
After peaking, its decline proved to be beneficial for altcoins, with Ethereum rocketing past $700 and taking many other smaller cryptocurrencies with it.
As Bitcoin’s strength mounts, however, most of these smaller altcoins are seeing stagnation, which could signify that BTC is about to post another leg higher.
Analyst: BTC Clear for Further Upside as Altcoin Rally Stalls
“Even at 27k BTC still refuses to give any sort of significant pullback or retest. Looking good for more upside, would match well with ALT/BTC pairs taking a small break after the recent jump,” he said while pointing to the below chart.
Image Courtesy Cryptorangutang. Source: BTCUSD on TradingView.
It does appear that the market is entering a phase during which time altcoins are inversely correlated to Bitcoin, which means that the proverbial “altseason” may not begin until Bitcoin sees a prolonged consolidation phase.
Featured image from Unsplash. Charts from TradingView.