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Throughout 2019, altcoins like Ethereum, Ripple, and others, have grossly underperformed next to Bitcoin, sans a few outliers like Chainlink, or Binance Coin, who had breakout years themselves in 2019.

But according to a very accurate-looking fractal on ETH/BTC price charts, Ethereum could soon break out against Bitcoin, helping to propel altcoins out of the gutter and back into a full-blown alt season.

ETH/BTC Trading Pair Fractal Hints at Ethereum Outperforming Bitcoin

The year of 2019 has been mostly about Bitcoin and its safe-haven narrative driving the price of the leading cryptocurrency by market cap up 350% at its high of $14,000. At its peak, the first-ever cryptocurrency was able to reclaim as much as 70% of the all-time high price it set at the height of the crypto hype bubble.

Related Reading | Important Long Term Ethereum Signal Ready To Flip Bullish 

During Bitcoin’s highly-publicized meteoric rise, another crypto asset, the number two cryptocurrency by market cap, Ethereum, also reached its all-time high price of $1,400. However, throughout 2019, Ethereum was only able to regain 25% of the ground it lost during the bear market and downtrend.

But that may soon change, as according to a fractal shared by one well-known crypto analyst, the ETH/BTC trading pair price chart is exhibiting a price pattern fractal that very closely mimics a pattern that played out just before Etheruem had its first alt season, where the altcoin exploded in value against its Bitcoin ratio.

In the chart shared by the analyst, prior to the main, blue-underlined price action notated with 7 total waves, a miniature version of the price action can be seen, with the same exact peaks and troughs. In the tiny-sized version, following the sixth wave down, came a powerful, seventh wave up that sent the price of the asset skyrocketing.

ETH/BTC just completed what appears to be the sixth wave down once again, which could indicate that an extremely powerful wave seven upward is about to begin, causing Ethereum to greatly outperform Bitcoin for the foreseeable future as it makes up for ground it lost throughout the year against the first-ever cryptocurrency.

The last time this occurred, Ethereum helped drag the entire altcoin market upward, causing what most refer to as an alt season – or a period of time when altcoins trend and significantly outperform Bitcoin as a result.

Altcoins have long been oversold, reaching increasingly lower lows, and potentially signaling that a bottom is in against Bitcoin and a reversal could soon take place – all while Bitcoin continues to correct following the lonely parabolic rally it went on by itself during the second quarter of the year.

Related Reading | Short Of The Century: $15 Ethereum Possible If Monthly Fails To Close Bullish 

ETH/BTC is currently priced at around 0.02 on the ratio against Bitcoin, but such a move could take the ETH/BTC back to 0.16 or higher, where the trading pair peaked in early 2017


Tony Spilotro , 2019-12-05 01:00:46

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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