Reported By: Bitcoinist.com
- Bitcoin is in the process of consolidating after the cryptocurrency saw a push to all-time highs last night, which led it as high as $36,000
- This movement came about suddenly and was quite surprising, but it didn’t last for long
- The rejection at these highs was not too grave, as BTC has been able to find some strong support within the lower-$34,000 region ever since
- There’s a strong possibility that it will consolidate here, as altcoins are beginning to gain some massive momentum
- Because altcoins tend to rally while BTC consolidates or drifts lower during bull markets, there’s a strong possibility that this pattern will boost ETH and other BTC peers
- One analyst explained that although Bitcoin is trading sideways, it is still seeing massive accumulation on platforms like Coinbase
Bitcoin and the entire crypto market have witnessed heightened volatility as of late. BTC surged to fresh all-time highs overnight before facing some selling pressure that caused it to drift down towards $34,000.
The crypto has been trading in this region ever since, which has allowed altcoins to gain some momentum.
One analyst is noting that the benchmark crypto is still well-positioned to see upside, noting that Coinbase whales continue buying in massive quantities despite its relatively high prices.
Bitcoin Consolidates Following Move to $36,000
At the time of writing, Bitcoin is trading up just under 1% at its current price of $34,300. This marks a decline from overnight highs of $36,000 that also happened to mark all-time highs.
The mid-term market trends should depend largely on whether Bitcoin plows higher or consolidates from here, as altcoins are beginning to gain some independent momentum.
If BTC sees another inflow of buying pressure that sends it rocketing higher, it could throw a wet towel on the momentum seen amongst large-cap altcoins.
Whales Continue Buying BTC at a Rapid Pace
Despite Bitcoin trading at relatively high prices, whales on Coinbase are still accumulating at an alarming pace.
Analyst Joseph Young spoke about this in a recent tweet, explaining that the Coinbase premium is nearly $100 over Binance.
“There is *HEAVY* accumulation of Bitcoin going on at Coinbase still. – Coinbase BTC premium is above $100 again compared to Binance – But another $100 million deposit to Bithumb was spotted. It’s a battle between U.S. high-net-worth buyers and Asia whale sellers.”
Where the market trends in the coming days will depend on Bitcoin and its continued reaction to the resistance in the mid-$30,000 region. Prolonged consolidation will likely prove bullish for altcoins.
Featured image from Unsplash. Charts from TradingView.
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