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Back in June this year, everyone was talking about the flippening, an event where Ethereum’s market capitalization overtakes that of Bitcoin. However, fast forward two months we find that Bitcoin has extended its lead over Ethereum by a huge margin. While Bitcoin’s market capitalization is about $66 bln, Ethereum is far behind at approximately $27 bln.
Usually, a rising tide lifts all boats, which is not happening now. Only Bitcoin is marching ahead, leaving the rest behind. This divergence between the top currencies is unlikely to continue for a long time. Soon, either Ethereum and the others will play catch up, or Bitcoin will correct.
Let’s see, what is more likely to happen.
BTC/USDToday, after reaching a high of $4,434.42 and trapping aggressive bulls, Bitcoin reversed direction and is in free fall.
It is a normal correction, which had been expected. Now, to what point can Bitcoin fall?
It is trading within the channel. The price has returned from the upper end of the channel resistance. Its next target on the downside is close to the $3,600 levels, where it should find some support. However, if $3,600 breaks, the fall can extend to the $3,000 levels, which should be a major support.
Therefore, traders should not be in a hurry to enter long positions until a strong support is visible either at $3,600 or at $3,000.
ETH/USDEthereum is slowly correcting towards $270 where it has support from the trend line and the 20-day exponential moving average (EMA). We expect to see a bounce from the support levels.
Therefore, traders can watch for about three to four hours and go long near the trend line if the support holds and buying is visible. A close stop loss is advisable because if the support level breaks, Ethereum can fall to $215 levels.
However, if the price turns around and rallies from the current levels, traders can go long above $330 and keep a stop loss below the recent lows with a target objective of $400. It is better to wait for the breakout to reach about three percent above the overhead resistance, therefore, instead of going long at $324, we have suggested going long at $330.
Read morehttps://cointelegraph.com/news/bitcoin-ethereum-nem-bitcoin-cash-price-analysis-august-15
