Bitcoin is looking a bit off on the charts, but Ethereum is soaring with the waves. Bitcoin and Ethereum are the top two leading coins in the cryptocurrency market, but from the way things are playing out, Ethereum seems to be crushing Bitcoin.
The chart above is the chart for the Bitcoin-US Dollar pairing; you will notice that Bitcoin came down all the way to hit 51,400 dollars today, another massive downturn for Bitcoin. This downturn would mark the fourth day under the fifty-day moving average, which means that short term, Bitcoin is in a kind of bearish trend. But you have to remember that with all these drops under the fifty-day moving average, the average time that we will see Bitcoin going through this kind of correction is twelve days.
We need to cross back above this fifty-day moving average to get that bullish momentum coming back into the market.
If you even look back down to about 2017, you will also observe that Bitcoin recovered from being under the fifty-day moving average every time it resulted in massive gains.
Ethereum, on the other hand, is soaring right now; looking at the chart above, you will notice the three green daily candles. We also had a strong come back down when we retested the zone of support. Resistance flipped into support, retested again as support price pushing higher. The price push is a very positive move for Ethereum as it did not come back down to touch the fifty-day moving average.
Looking at the weekly Ethereum-Bitcoin pair, you will notice that we have an incredible asymmetrical triangle forming up for the past few years, and we finally had a breakout of this pattern back in January. There was a beautiful testing situation where Ethereum dipped and bounced dramatically higher and has now doubled in valuation versus Bitcoin from that low back in December. We had a big move up, came back, and did test the fifty-week moving average. Ethereum bounced from that and is now pushing higher, looking to hit new multi-year highs.
Currently, one Ethereum is worth about 0.044 Bitcoin. Hopefully, in the short term, Ethereum could go as high as 0.08 Bitcoin over the next few months.
Although, some people are saying that we will see Ethereum raging and potentially getting up to these previous insane highs that we saw in June 2017, where one Ethereum was worth 0.17
Bitcoin was at an incredible price point. We could see a dramatically high move for Ethereum in the next few weeks.
On the other hand, Ethereum has gone mega bullish Q1 of this year. In Q1 of 2021, Ethereum settled over 1.5 trillion dollars, which is more than the previous seven quarters combined. Ethereum is without a doubt becoming the premier settlement layer of the blockchain space.
Ethereum beats Bitcoin because people are mostly buying and holding their Bitcoin; they are not transferring it around, whereas Ethereum is used for nearly everything.
