Bitcoin, Ethereum Crumble, Alt-Coins Hammered - Will Buyers Step Back In Again?

WILL HISTORY REPEAT ITSELF?

While the current market is under pressure, a look at Bitcoin’s daily chart over the past few months shows that double-digit sell-offs and subsequent recoveries have already happened three times this year. This may give hope to holders and new investors who will cite history repeating itself for being in the market. The daily chart also clearly shows the oversold nature of the market, using the CCI indicator, and this may add to the bull’s arguments. The technical set-up however tells a slightly different story with the recent sell-off negating the bullish series of higher lows. Bitcoin has also made a decisive break below the 50-day simple moving average, a technical indicator that has provided support since October 2020.

BITCOIN (BTC/USD) DAILY PRICE CHART (OCTOBER 2020 – APRIL 23, 2021)

Bitcoin Chart

Ethereum has been making headlines this week as it continues its recent outperformance of Bitcoin. The Ethereum/Bitcoin spread hit its highest level since August 2018 yesterday, before backing off today. When this market settles down, this trend looks likely to resume.

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