The market is facing a lot of volatility as the two major assets, bitcoin (btc) and ethereum (eth), are in crucial accumulation phases. However, bitcoin has been performing better over the past ten days, standing out amidst the fluctuations.
Related reading
The eth/btc chart reveals this shift. At the time of writing, the price of ethereum in terms of bitcoin was at 0.043, its lowest level since April 2021. This highlights bitcoin’s dominance in the current market environment.
As prices move and investors look for an edge, critical data reveals a clear preference for bitcoin over ethereum in recent months. While the market may seem calm, history shows that things can change in an instant. Therefore, examining data and on-chain fundamentals is vital to anticipate potential changes.
Traditional investors are showing an increasing preference for bitcoin over ethereum, as evidenced by crucial data from Farside Investors, a London-based investment management firm. According to its reports, Spot btc/” target=”_blank” rel=”nofollow”>bitcoin ETF have seen five consecutive inflows, while ethereum ETFs have seen five consecutive days of outflows.
While some market participants believe that the ethereum ETF outflows are due to selling pressure from Grayscale, analyst and investor Lark Davis has x.com/TheCryptoLark/status/1826601823773557224″ target=”_blank” rel=”nofollow”>refuted this argumentHe notes that “roughly 30% of eth is already out of Grayscale’s $ETHE ETF,” implying that the outflows are driven by broader market sentiment rather than Grayscale’s influence.
This trend underscores bitcoin’s undeniable dominance in the market, as traditional investors continue to favor btc over eth in times of uncertainty and volatility.
bitcoin price is currently at $61,280 at the time of writing. It has been in a consolidation phase since August 8, oscillating between the local resistance at $62,729 and the local support at $56,138 on the 4-hour timeframe. This period of sideways trading has kept the market on hold as investors keep a close eye on the next significant move.
For the bullish trend to be confirmed, btc needs to break above the $63,000 level and close above the 200-day daily moving average, a crucial indicator that often acts as support during bull markets and resistance during periods of deep corrections. The 200-day daily moving average has been a critical level in determining the overall trend, and reclaiming it would signal a possible continuation of the bull market.
Related reading
While bitcoin’s current dominance in the market is evident, it is important to note that this dominance may not last forever. The market remains dynamic and changes in sentiment or overall market conditions could alter the outlook at any time.
Featured image created with Dall-E, chart from Tradingview.com