The crypto market has been going crazy for the past few days; Ethereum is hitting on a new all-time high after the other, Polygon is making waves, and many coins are hitting new all-time highs. It is very exciting when a lot of crypto news comes through.
From the chart above, we can see that Bitcoin is still in the same bearish downtrend it has been in for a while under the fifty-day moving average. We came right up, tested the fifty-day moving average, and rejected back down. The attempt to break that line of resistance did not work out. Bitcoin is building up momentum to go above the fifty-day moving average, and when that happens, we will know that the bulls are back in the market, and the price is getting ready for its next potential rally.
While Bitcoin has been moving sideways, Ethereum has been going crazy over the past few days. Ethereum got up to $2,799; it has been very bullish recently. The most interesting thing is the Ethereum and Bitcoin pair; Ethereum has been going crazy versus Bitcoin.
The chart above is the breakout pattern for the Ethereum and Bitcoin pairing, forming up for a few years already. We had this breakout attempt at the beginning of the year, came back down, and tested our support. One Ethereum is now worth 0.05 Bitcoin; the next target and major area investors look at is 0.08.
We have to keep in mind that Bitcoin will not be in a state of limbo forever, Bitcoin will come back with fire, and when it does, most of the altcoins will probably take a seat during that time. Until that happens, there is a huge opportunity for altcoins, and the Ethereum versus Bitcoin pairing is an indicator of what could happen to altcoins this season.
An Asian Video Game Publisher, Nexon, has purchased 100 million dollars worth of Bitcoin. This purchase represents less than two percent of their total cash and their cash equivalents on hand. This is a very big purchase, and we shall see if this ends up being the situation where they got their first hit of Bitcoin and that 2% ends up being five or ten percent by the end of the year. We have seen a few companies doubling down on Bitcoin as time goes by.
United States Bank, BMY Mellon, has blamed their zero exposure to Bitcoin for their funds' underperformance. This is quite funny because right now, we have banks that do not have exposure to Bitcoin, and it is harming their bottom line that if only they had a couple of percentage points in their funds, they would have done better.
When you begin to realize the implications of a statement like this from a big bank, you will realize that there will be a lot of FOMO happening for the rest of the year with these different banks, different hedge funds, and private millionaires rushing to get a position on Bitcoin.
