Bitcoin (BTC/USD) Slide Resumes, Ethereum (ETH/USD) Continues to Outperform
Bitcoin (BTC/USD), Ethereum (ETH/USD) Price, Analysis and Chart:
- Bitcoin is trading lower but its chart remains positive, just.
- Ethereum continues to close the gap on Bitcoin.
A heavy sell-off on Sunday has stalled the multi-month Bitcoin rally, leaving BTC vulnerable to further losses. The weekend’s sharp sell-off is said to have hit leveraged accounts hard and this week’s drift lower could be due to residual selling and account balancing. While market sentiment is currently neutral-to-bearish, the daily chart still shows Bitcoin in an upward trend with an unbroken series of higher lows and higher highs dominating the chart. This pattern needs to remain in place if BTC is to press higher. A break and open below the March 25 higher low around $50,350 will turn sentiment negative. The CCI indicator shows Bitcoin in oversold territory for the first time since late January, while the recently supportive 50-day simple moving average is now acting as short-term resistance.
Bitcoin (BTC/USD) Daily Price Chart (October 2020 - April 22, 2021)
While Bitcoin has been fading lower, Ethereum continues to push higher and is close to making another all-time high. The supportive zone between $1,940 and $2,043 held again, allowing ETH to rally sharply to just under $2,500 as we write. A break above the prior high, made on April 16 leaves the way open to $3,000 or higher in the medium-term. All three moving averages are supportive, while the CCI indicator shows ETH creeping into overbought territory.
Ethereum (ETH/USD) Daily Price Chart (October 2020 – April 22, 2021)
The recent divergence between Bitcoin and Ethereum, with the latter outperforming, has pushed the ETH/BTC spread towards a multi-month high. A break and open above the February 2021 high would leave the spread at levels last seen in August 2018. The weekly chart shows a series of higher lows and higher highs from September 2019 onwards, while the CCI indicator is back in overbought territory. Bitcoin’s market dominance has fallen from just under 70% at the start of the year to just over 50% as the alt-coin rally continues to outpace the market leader.
Ethereum (ETH/USD) Weekly Spread Chart (April 2018 – April 22, 2021)
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