This is why an analyst said that Bitcoin will outperform Ethereum in the short term


In terms of price potential, Bitcoin (Bitcoin) Staring at the possibility of surpassing Ether (Ethereum) in short term.

Therefore, David Lifshitz, chief investment officer of ExoAlpha, a Paris-based investment management services company, believes that Bitcoin’s recent upside potential is higher than that of Ethereum. He said this after discovering the recent changes in the BTC/ETH ratio.

In detail, BTC/ETH Comparative trend momentum Bitcoin and Ethereum. The lower reading indicates that the price of Bitcoin is rising at a slower rate than Ethereum. On the contrary, the higher BTC/ETH ratio indicates that Bitcoin price momentum is surpassing Ethereum.

Recently, Ethereum looks like an upgraded version of Bitcoin.When the BTC/USD exchange rate soars, the ETH/USD exchange rate Rising but higher profit marginsSimilarly, when BTC/USD fell, ETH/USD plunged more.

The price comparison of Bitcoin and ETH within the same percentage range. Source: TradingView.com

The difference in price momentum caused the BTC/ETH ratio to fall within the range of the descending channel. By doing so, the ratio provides traders with a way to measure which token—Bitcoin or Ethereum—will bring better profits in terms of short-term relative strength and weakness. Lifshitz stated:

At current levels, this ratio indicates that BTC is undervalued relative to ETH, so savvy traders may buy Bitcoin and sell Ethereum at the same dollar ratio, betting that the ratio may be about to rebound from the lower channel boundary to the upper channel Limit, and then resume when the ratio approaches the upper limit again.

The ratio after the collapse of Musk’s leadership flattened

The comparison between Bitcoin and Ethereum price momentum comes from Federal Reserve officials Announce On Wednesday, they are expected to start raising interest rates in 2023, earlier than their previous forecast for 2024.

Bitcoin and Ethereum’s first reaction to the Fed’s news was negative. The BTC/USD exchange rate closed down 4.51%, while ETH/USD fell 6.91%. In contrast, on May 19, after Elon Musk launched a Twitter war against Bitcoin, BTC/USD fell by 14.29% and ETH/USD fell by 27.61%.

The readings indicate that the huge difference between Bitcoin and ETH price momentum started to flatten out after the crash on May 19. Lifshitz called it another sign that Bitcoin will become more valuable than Ethereum.

He says:

“In the past 3 weeks, the relative price ratio of BTC/ETH seems to be flat. If we look closely at the past few days, this ratio has become higher and higher, which means that BTC tends to become more valuable than ETH.”

After testing the lower range of the channel, the BTC/ETH ratio is flat relative to the price

At the same time, Lifshitz reminded that the easing rebound of the BTC/USD ratio has little effect on offsetting the downward channel pressure. Therefore, after testing the upper limit of the channel, the ratio may continue to fall.

Bitcoin and Ethereum transaction settings

The size of Bitcoin and Ethereum’s next trend – whether it’s up or down – depends on their unique technical and fundamental factors.

Lifshitz stated that Bitcoin is still hovering between USD 33,000 and USD 39,000-40,000. Break through 42,000 USD Confirm short-term bearish bias. In doing so, the base cryptocurrency may rise to $50,000, a level that coincides with the local bottoms on April 26 and May 12.

Although BTC is still ignorant of the next price direction, Bitcoin trading volume soared after the crash on May 19. ExoAlpha chart

But to achieve the bullish move, the executive added that Bitcoin miners need to exhaust their sales or be confident that they will sell their BTC reserves at a higher price in the future. At the same time, bargain hunters and institutional investors (such as MicroStrategy) will provide further upward tailwinds for the $50,000 price target.

“Of course, in this battle between bulls and bears, there is the Elon Musk Twitter factory, which supports Bitcoin once and does not support it, and it will shake the price every time,” Lifshitz reminded.

As for Ethereum, Lifshitz expects the cryptocurrency to soar to $2,850 in the next few trading days. This is the same level that ETH touched before its sudden rise on May 3; at the same time, it also acted as resistance when ETH tried to fully recover from its price bottom on May 19.

After the crash on May 19, the trading volume of Ether remained roughly unchanged. ExoAlpha chart

Ethereum bulls continue to work hard to deal with the symmetrical triangle indicator on the other side and its tendency to further drive down prices. Symmetrical triangles are continuation patterns. Therefore, they tend to send prices in accordance with previous trends.

Lifshitz said: “As the price approaches the apex of the triangle, it is expected to rise or fall from the $2,500 level.”

At the same time, one of the highlights of the Bitcoin and Ethereum charts is related to their trading volume. Although the trading volume of BTC/USD increased after the price plunge on May 19, the trading volume of Ethereum was roughly the same.

Lifshitz emphasized: “This makes the potential reversal of power between Bitcoin and Ethereum very comfortable.”