Summary
If ETH/BTC can continue to rise, it means BTC.D cannot rise either—what does this mean for traders and investors?
Summary If ETH/BTC can continue to rise, it means BTC.D cannot rise either—what does this mean for traders and investors? According to Circle Network:
Since April, Ethereum has outperformed Bitcoin, and a breakout of ETH/BTC on higher timeframes is a sign of Ethereum's strength. However, this does not mean Bitcoin is weak.
Ethereum [ETH] has risen 44% from its low at the beginning of July to $2,373. As of the time of writing, it is trading at $3,426, and rising institutional demand and spot ETF inflows may further drive the upward trend.
From the weekly chart, ETH/BTC seems to have turned a corner. After breaking the local resistance level of 0.02629, ETH/BTC has formed a bullish structural breakout and is challenging the level of 0.02968. A breakout above the second resistance level may open the upward trend for ETH/BTC.
ETH/BTC tracks Ethereum against Bitcoin [BTC]. Since 2023, it has been in a severe downtrend, and since the summer of 2024, this downtrend has turned into free fall.
Now, as demand for Ethereum continues to grow, this trend began to reverse in the past two months. In a post on X, cryptocurrency analyst Matthew Hyland stated that the upward trend of ETH/BTC may impact Bitcoin's dominance (BTC.D).
He explained that if ETH/BTC can maintain bullish momentum, then 'the dominance of BTC has a 99% chance of having peaked.' While this is true, traders and investors must consider one factor.
Does a bullish ETH/BTC mean the Bitcoin rally is over?
Although the weekly chart for ETH/BTC shows signs of an upward trend, the weekly chart for BTC.D has not yet broken its bullish trend. It has been forced down to a higher low of 62.4%, but no decisive structural breakout has occurred yet.
Analyst Hyland believes that a breakout will occur once ETH/BTC continues to rise.
AMBCrypto agrees, but a key factor traders and investors need to consider is time. These trends take time, and it doesn't mean the Bitcoin rally has stopped.
Even after ETH/BTC breaks out, there may be weeks of retracement or consolidation. This could be the timing for Bitcoin to rise. Therefore, while the BTC.D breakout is good news for altcoin investors, it does not mean Bitcoin holders should sell their assets.
On the contrary, the cryptocurrency market may see significant increases in the coming months, which is the final phase of the bull market after the halving in April 2024. #BTC再创新高 $BTC$ETH