A Top Trader Predicts Ethereum Will Outperform Bitcoin in the Long Term
A prominent trader known as Dave the Wave believes that Ethereum (ETH) is poised to outperform Bitcoin (BTC) as the longer-term trend continues. While Ethereum appears to be experiencing a series of lower highs and lower lows when viewed in the shorter term, Dave the Wave suggests that zooming out reveals a different picture.
According to him, the longer timeframe is more significant and can help predict future price action. He cautions against falling into the trap of hindsight bias, where individuals tend to analyze past price action without considering future possibilities. He emphasizes that true speculators focus on predicting future price movements rather than simply describing recent trends.
Ethereum’s Potential Breakout
When looking at a multi-year timeframe, Dave the Wave illustrates how ETH/BTC could be nearing the end of a large wedge pattern, indicating a potential breakout to the upside in early 2023 or thereabouts.
Bitcoin’s Long-Term Performance
For Bitcoin, Dave the Wave uses his own version of logarithmic growth curves (LGCs) to analyze its long-term market cycle highs and lows while filtering out volatility and noise. Based on this analysis, he suggests that Bitcoin will continue to outperform traditional assets like stock indices for at least another decade before reaching full capitalization and keeping pace with inflation.
Hot Take: Ethereum Set for a Stronger Future
According to top trader Dave the Wave, Ethereum has the potential to surpass Bitcoin in performance over the long term. While short-term trends may show lower highs and lows for Ethereum compared to Bitcoin, zooming out and considering a larger timeframe presents a different perspective. Dave the Wave believes that Ethereum’s wedge pattern indicates an upcoming breakout in early 2023. On the other hand, Bitcoin is expected to outperform traditional assets for another decade before reaching full capitalization. This prediction suggests that Ethereum may be a more promising investment option in the future.
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