Bitcoin (BTC/USD) Recovery Continues, Ethereum (ETH/USD) Cracks a New All-Time High
Bitcoin (BTC/USD), Ethereum (ETH/USD) Price, Analysis and Chart:
- Bitcoin continues to pare recent losses.
- Bitcoin dominance below 50%.
- ETH/USD spread at a near three-year high.
The cryptocurrency market continues to make inroads into recent losses with some coins, notably Ethereum, outperforming Bitcoin as the market moves higher across the board. The recent sharp sell-off always looked likely to prompt fresh bullish interest, following a series of crashes and rebounds seen this year.
The daily chart shows that market leader Bitcoin is becoming increasingly resilient to any sharp sell-off with BTC recovering from three earlier slumps this year. If history repeats itself, and the series of recent higher lows remain in place, then Bitcoin holders may be looking at a new high in the coming weeks.
Bitcoin (BTC/USD) Daily Price Chart (September 2020 – April 28, 2021)
While Bitcoin recovers, it is at a slower pace than other majors in the market, pulling down BTC’s market dominance to below 50% for the first time since early September 2018. While Bitcoin’s dominance has fallen to 49.5%, the second-largest coin, Ethereum, has seen its market capitalization rise to 14.65%, its highest level since early February.
Chart via CoinMarketCap.com
Ethereum remains in vogue with buyers pushing ETH to a fresh all-time high this week. The recent Berlin upgrade, a change to the underlying protocol to improve the system, has helped this move which looks likely to continue going forward. This recent outperformance has pushed the ETH/BTC spread to its highest level since August 2018, and the weekly chart, while suggesting the spread is overbought in the short-term, remains positive looking further ahead.
ETH/BTC Weekly Spread Chart (July 2018 – April 28, 2021)
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.