Crypto Market Cools Off as Bullish Surge Stalls

Crypto Market Consolidates After Bulls Falter

Amidst mounting uncertainty, the cryptocurrency markets have retreated into a period of consolidation following moderate speculative gains. Buying momentum has waned, driving prices for prominent tokens, including Bitcoin (BTC), close to critical support levels. Albeit anticipations of a positive quarterly close, analysts foresee a potential downward trajectory for BTC post-halving, creating a conducive environment for altcoins to flourish.

BTC has lingered within a narrow trading range for the past 48 hours, with technical indicators suggesting a bearish undertone. Notwithstanding, it is widely believed that the price will maintain an uptrend until the upcoming halving event, which is anticipated to occur without a significant pullback. Subsequently, altcoins are poised to gain substantial traction.

This bullish outlook stems primarily from the BTC dominance index, which is approaching a significant resistance level that could trigger a bearish correction. The weekly chart depicts BTC dominance consolidating above this pivotal resistance, confined within an ascending wedge pattern. The pattern suggests that this consolidation could extend for another 3-4 weeks before reaching its apex.

Strikingly, the current consolidation mirrors the one observed in 2019-2020, which preceded a substantial price decline. Hence, both indicators point towards a potential major pullback, potentially relegating BTC to a period of range-bound trading or extended consolidation.

Renowned analyst Michael van de Poppe aligns with this bearish prognosis, predicting a drop in dominance after the halving. He further observes that the current valuation of altcoins relative to BTC is extraordinarily low, indicating a potential surge in purchasing interest.

In conclusion, while the cryptocurrency market exhibits signs of consolidation, technical analysis suggests a possible downturn for BTC in the wake of the halving. This bearish trend could pave the way for altcoins to assert their position in the market, bolstered by their undervalued status and the waning dominance of BTC.