An Ugly Wick
After reaching a new local high of $49,000, the bitcoin price experienced a 15% drop, causing a loss of $7,500. The resulting long wick is an unsightly indicator that suggests bitcoin may have already reached its peak and is now preparing for a decline.
Bitcoin Still Respecting Trend
When examining the shorter daily time frame, it becomes evident that while bitcoin briefly fell out of the upward sloping channel, it is currently showing signs of climbing back in. Additionally, bitcoin has been adhering to a trend line that dates back to mid-August. These factors indicate that bitcoin may experience an upward trajectory first.
Ethereum a Better Bet?
Considering these factors, even if bitcoin bounces back, ethereum appears to be a more promising investment option for the upcoming weeks. However, for ethereum to gain ground against its bitcoin pair, it must surpass the critical resistance level of 0.059.
Critical Resistances
Taking a closer look, one can observe the significance of this resistance level, as it coincides with a downward trend line. The price has already encountered these barriers and is currently attempting to break through. If ethereum successfully surpasses this level and consolidates, substantial gains against its bitcoin pair can be expected.
Hot Take: Ethereum Takes the Lead Against Bitcoin
While bitcoin may still experience a bounce, ethereum is emerging as a more favorable choice in the near future. Its potential to overcome critical resistance levels and its ability to gain ground against the bitcoin pair makes ethereum a promising investment option in the coming weeks.
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