Yearn.finance is currently trading up well over 100% from its weekly lows, while other blue-chip tokens within this sector have seen similar gains. Aave’s token is also up well over 100% and showing no signs of slowing down anytime soon.
This trend marks a departure from that seen over the past several weeks, as previously, Bitcoin’s price had been sucking the oxygen out of the room – rallying while many altcoins posted notable losses and drifted lower.
One analyst believes that this trend could just be getting started.
He explained in a recent tweet that Bitcoin could soon enter what could be a prolonged consolidation phase. This will open the gates for a full-fledged “altseason” that allows the tokens to post significant gains – he claims.
Bitcoin Consolidates Below $16,000 as Momentum Stalls
These consolidation bouts are typically short-lived and rapidly followed by the cryptocurrency posting another leg higher.
It is currently caught within one of its longer bouts of sideways trading, which is a testament to the intense resistance sitting at $16,000.
Potential BTC Consolidation Phase Could Propel Altcoins Higher
“BTC (dominance) – holding support above previous resistance, as Bitcoin also holds close to recent swing highs… Alts look charged to move more if the price ranging can continue. Curious to see which ways this moves when Bitcoin moves out of range showing true alt strength.”
Image Courtesy of Chonis. Source: BTCUSD Dominance on TradingView.
Featured image from Unsplash. Charts from TradingView.