Bitcoin faced a strong drop into Friday. The cryptocurrency, after peaking at $40,000, fell as low as $34,000 in a flash drop on Friday morning.
The drop was odd because the cryptocurrency was strongly underperforming altcoins. Normally, during Bitcoin corrections, altcoins fall against the U.S. dollar and against BTC, though this was not the case.
Bitcoin has since bounced back toward $36,500 since the daily lows.
Bitcoin Could Enter Consolidation, Analyst Predicts
One crypto-asset analyst recently suggested that Bitcoin has a good likelihood of consolidating in the short term, which could end up resulting in an altcoin rally.
He shared the chart below on Friday, showing Bitcoin’s potential outlook ahead of the weekend. The chart shows that BTC is currently rubbing up against a key support level and against a number of key moving averages. This formation led him to suggest that the cryptocurrency will end up consolidating throughout the weekend.