The strength of Ethereum pushes the Bitcoin ratio to 2018 highs

As Bitcoin (BTC) ended a harsh weekend with a 5% drop and massive sell-off, in contrast, Ethereum (ETH) still maintains the strength that has been happening since October. Weekly update of Arcane Research It shows that the ETHBTC pair has reached the highest level since May 2018, reaching 0.085 BTC, seeing possible signs of maturity and the upcoming replacement season.

source: Arcane research weekly update

In 2021, ETH will show greater strength than Bitcoin. Compared with BTC, the low point of this cryptocurrency may be higher than in 2017 and 2018, so it may indicate its maturity.

However, Arcane Research pointed out that as early as 2021 and 2018, the performance of ETH and altcoins during the low point of BTC also indicates that prices are about to fall, so a similar situation may occur in the fourth quarter of 2021.

The current peak of the ETHBTC currency pair is similar to the peak in May, followed by the May 19 crash during the massive liquidation and new buyer panic-some users say this is the second worst in Ethereum history One day, although a similar phenomenon occurred in earlier years-. Then, the ETHBTC pair surged again in early September because Bitcoin fell to a low on the 7th.

In addition, we may face a market bubble, as the strength of altcoins has shown this before.

Ether also fell on Saturday, but soared to the mentioned high of 0.086 Bitcoin on Sunday. The price fell by 5.5% on Monday to $3,965. Overall, compared with the 10.06% drop of BTC, the trading price in the past week dropped by 0.51%.

Today, the price of Ethereum has risen again by about US$4,352.74, up 2.93% within the day, and soaring more than 24% from a low point. Although it is still 9% away from the all-time high, it has also risen by 496% compared to the beginning of 2021. The 24-hour trading volume of ETH is USD 23,566,690,676, and the market capitalization is USD 512,648,545,331.

Ethereum
Ethereum is trading at $4,352 on the daily chart | Source: ETHUSD on TradingView.com

Related Reading | Ethereum “accumulation” is approaching the lift-off stage: What does this mean for Bitcoin

Bitcoin dominance hits a new low

Today, Bitcoin’s dominance is 40.65%, There was no increase that day. When it saw the latest bloodshed on December 5, it had fallen to 40%. BTC’s dominance in September and May has also declined, but there have been no other similar lows since May 2018.

As the cryptocurrency market started to fall on Friday-by Monday there were 372,000 cleared crypto accounts for a total of $2.3 billion-early on Saturday morning, the price of Bitcoin dropped by $10,000, from approximately $57,000 to $47,000.

Last weekend, the drop reached $14,000. Experts believe that there is no clear reason, but since then, traders said that this is related to the fear surrounding Omicron variants and the exaggerated market movements due to the decline in trading liquidity.

Compared with the historical high in November, BTC has fallen by US$21,000, but has risen by more than 75% throughout 2021. The price has risen to more than US$50,000, which is more than 4% higher, and the total market value of cryptocurrencies has soared by 5% to US$2.5 trillion.

Bitcoin is trading at $51,258 on the daily chart | Source: BTCUSD on TradingView

Some people expect Bitcoin to be difficult at the end of this year because it does not show normal strength, but at the same time NBC Finance Channel To quote Will Clemente, an insight analyst at Blockware Solutions, he believes that these dynamics are “healthy, indicating that the supply continues to shift to long-term investors.” BTC may actually see a new bull market early next year:

There is a reasonable situation that we can see the opposite effect in the first quarter, because the fund is willing to take more risks in the new year and bring new profits and losses… This effect will help Bitcoin in 2021 The sharp rise in January.

Related Reading | Ethereum lacks momentum to exceed $4,200, but the decline may be limited

Source link

Leave a Reply

Your email address will not be published.