Ethereum outperforms Bitcoin as crypto markets still on shaky ground
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Loading... - Leticia Campana
- 09 Feb 2023
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Bitcoin (BTC) ended up disappointing the market on Wednesday by rounding the session off 1.2% lower, dragging the BTC/USDT pair below US$23,000 once again.
Losses have continued to pile up this morning, with another percent shaved from the pair, suggesting that Tuesday’s post-Powell rally may have been the short-term exception to the rule.
We can see buyers’ support gathering at US$22,700 per the Binance order book, which could help stem further losses.
Bitcoin bulls surely need to keep the benchmark cryptocurrency comfortably above US$23,000 in order to rally market confidence, but it is undoubtedly proving tough.
Partially this is due to a doggedly determined US Dollar Index (DXY) which has seen some relief lately after crashing pretty consistently since September 2022’s astronomical highs.
If a rally fails to materialise, it will put to bed the long-held ‘golden cross’ theory that hypothesises a bull market whenever bitcoin’s 50-day moving average price moves above its 200-day moving average.
Investors have been waiting with bated breath ever since we saw a golden cross a few days back. It’s yet to happen, but perhaps this is the bears’ last hurrah before bitcoin shoots up to a fresh all-time high. Just don’t hold your breath.
Ethereum continues to outperform bitcoin, with the ETH/BTC pair now more than 5% higher month to date.
A lot of this has to do with ether’s post-Merge tokenomics, which has seen the second-largest cryptocurrency by market capitalisation become deflationary. Read More…
