Bitcoin Stays in Consolidation Phase, Analyst Predicts Altcoin Set for Major Rally

Bitcoin, the dominant cryptocurrency, currently finds itself at a critical juncture as several indicators suggest that its price may experience a decline. In recent weeks, Bitcoin has been on a downward trajectory, dropping below $41,000 after reaching a high of $49,000 on January 11th.

Crypto analyst Michaël van de Poppe has provided insights that point to a significant rally in the overall market capitalization of all crypto assets, known as the TOTAL chart. He believes that this chart is gearing up for a surge of almost 33%, aiming to reach a market cap of $2.1 trillion.

However, Van de Poppe suggests that this surge will be driven by altcoins rather than Bitcoin. He predicts that altcoins will take the spotlight while Bitcoin goes through a consolidation phase. This optimistic view on altcoins aligns with his analysis of the Bitcoin dominance (BTC.D) chart.

According to Van de Poppe, this chart indicates Bitcoin’s share in the crypto markets and is following a pattern observed in 2016 and 2020, where it peaked just before the Bitcoin halving event. Based on this historical cycle, he anticipates that altcoins will outperform Bitcoin after a period of consolidation.

Van de Poppe wonders if Bitcoin has already reached its lowest point but suggests that it may still go slightly lower before rebounding. Despite this, he expresses personal interest in accumulating more Bitcoin and identifies the range of $36,000 to $40,000 as an ideal zone for adding to positions.

While Bitcoin takes a break in its consolidation phase, attention is shifting towards the broader market, where altcoins are expected to make significant moves.

Currently, Bitcoin is trading at $40,803, experiencing daily losses of less than 1.91% and a weekly decline of over 3.4%.