As Bitcoin prepares to break through the top of its bull flag, or perhaps be rejected once again, both Ethereum and Solana are starting to turn the tables on the number one cryptocurrency. If $BTC can hold firm, is this the time when the major altcoins will start to steal the show?
$BTC having a bit of a moment
The $BTC price is having a bit of a moment right now, and is threatening to reject, and break down from the $65,500 resistance. That said, if current support at $64,300 can hold, and $BTC can get a bid from here, the price can start climbing again.
The altcoins are still very dependent on what Bitcoin is doing pricewise. That said, if the $BTC price starts rising, or at least remains stable, a few of the more fundamentally sound, and well capitalised altcoins, can begin to outperform.
$ETH beaten down against $BTC, but could the comeback start here?
Source: TradingView
$ETH is an obvious case. Beaten down hugely in its ETH/BTC pairing, it might be imagined that the number two cryptocurrency by market capitalization must surely begin to turn things around.
So far today, $ETH is up 1.5% against $BTC. Having just bounced at a long-time trend line, the $ETH price has a descending trend line before it, and quite some way to go before a potential higher high that would officially signal a trend reversal. The fibonacci levels on the above chart give some short-term targets.
Very negative higher timeframe chart for $ETH against $BTC
Source: TradingView
Looking at the weekly chart for the ETH/BTC pair, it must be admitted that things do not look bright for $ETH. The price may have just bounced from the bottom of the descending channel, but it is below both the 50 and 100 simple moving averages, and has also dipped below the bull trend line which has been in force since September 2019.
SOL/BTC short-term channel breakout
Source: TradingView
In contrast, the SOL/BTC pair looks hugely more positive. In the short-term time frame, the SOL/BTC price has escaped out of the descending channel, and is looking to consolidate above.
SOL/BTC arriving at major decision point
Source: TradingView
When zooming out into the weekly view for SOL/BTC, it can be seen that the pair is about to arrive at a major decision point. It looks like the momentum is behind $SOL, given that it is up 393% against $BTC since the start of the bull market.
The Stochastic RSI is also signalling strong momentum in $SOL’s favour, given that the indicators look to be heading towards the upside once again.
In summary, an $ETH bottom against $BTC is tough to call, given the major breakdowns that have already occurred. On the other hand, the $SOL price is still thriving against its $BTC pair, and should the breakout of the huge triangle be to the upside, the $SOL dominance against $BTC could accelerate.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
