A closely followed crypto analyst believes that Bitcoin (BTC) could now be in a position to significantly outperform Ethereum (ETH).
Pseudonymous analyst Kaleo tells his 562,700 Twitter followers that the Ethereum/Bitcoin pair (ETH/BTC) is now trading below a diagonal trendline, suggesting that ETH is likely to trail BTC in terms of gains.
“ETH/BTC finally broke beneath the high timeframe support line we’ve been watching.
Remember, this chart only shows relative strength to BTC, so expect to see BTC begin to outpace a bit more rapidly sometime over the next several weeks.”
Traditionally, a bearish ETH/BTC chart indicates that Bitcoin will likely rise in value faster than Ethereum and the general altcoin market.
Looking at Bitcoin itself, Kaleo says BTC is likely headed toward the $30,000 price level after it managed to bounce from support at around $21,000.
“High timeframe support has held strong. SPX [S&P 500 index] is currently at 4,000 support, which I still see rallying to 4,300 over the coming weeks. $30,000 is a magnet.”
In the short term, Kaleo says Bitcoin will likely gather more momentum if it takes out resistance at $22,400.
“CPI came in a bit higher than expected and the market is basically flat. SPX / NDX [Nasdaq-100 Index] look primed for a leg higher after a bit of initial volatility, and BTC is knocking on the door of reclaiming a major level it lost last Thursday. $30,000+ is still a magnet.”
At time of writing, Bitcoin is worth $22,214.
Generated Image: Midjourney