BTC Consolidation May Set Up ETH For A 30% Surge: Analysis

The Bitcoin (BTC) dominance remains high today at 66.3% and so does the amount of attention that traders are dedicating to the largest digital asset and its price action, the cryptonews show. The move from $7,800 to $8,850 last week has led to the BTC consolidation period which we are seeing now – and one that could trigger the price of Ether (ETH) to surge by 30% in the near term.

The move from $7,800 to $8,850 last week will have further entranced investors and the hope of breaking above $10,000 may have distracted some traders from noticing the awakening which occurred with many altcoins.

As we reported earlier in the Ethereum latest news, a growing number of altcoins have posted impressive gains in the BTC consolidation period. It seems like this trend is set to continue – and for some traders – it is a welcome change of events.

The multi-month consolidation for Bitcoin in a giant descending wedge led many altcoins to defy trader’s common logic and the majority of altcoins continued to drop to new lows instead of rallying. As analysts show, a likely explainer of this scenario are the following facts:

• Traders have burned their fingers from attempting to take altcoin positions in 2018.
• Altcoins have decreased in value in the BTC consolidation period and when Bitcoin made a move from $4,000 to $13,800.
• Altcoins continued declining in value as Bitcoin consolidated from June 26 until September 22 and traders appeared reluctant to take up positions in altcoins because of the previous cycles.

As it stands, the most recent drop from $10,300 to a multi month low at $7,700 served as a signal for many people to invest in altcoins. Some traders found confirming evidence in comparing Bitcoin and altcoin to identify some bottoming patterns and the possibility of future rallies.

Meanwhile, there are still others who recall the year 2018 and the period when BTC traded in the $6,000 range for many months before dropping to $3,200 in November when the Bitcoin Cash (BCH) hard fork took place.

The recent price action by Bitcoin in the $10,000 to $9,000 range also led some traders to predict that a drop below $8,000 might eventually bring the digital asset back in the $6,000 range and start a new BTC consolidation period.