Categories: Bitcoin

Ethereum eyes 3-week winning streak vs. Bitcoin as BTC price drifts below $39K

Bitcoin (BTC) headed lower on Aug. 5 after an attempt to reclaim $40,000 failed to garner buyer support.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Accumulation recalls October 2020

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping to local lows of $38,700 on Bitstamp, down around 1.5% in several hours.

The largest cryptocurrency had benefited considerably from remarks by Gary Gensler, the new Chair of United States regulator, the Securities and Exchange Commission (SEC), Tuesday, but momentum stalled at the psychologically significant $40,000 mark.

Thursday’s dip took away the prospect of flipping the 21-week exponential moving average, (EMA), one of several eyed by analysts this week, as firm new support.

https://twitter.com/rektcapital/status/1422947914830204933?ref_src=twsrc%5Etfw

Meanwhile, on-chain indicators once again contrasted with middling BTC price action. In particular, Thursday revealed the extent of long-term holder (LTH) Bitcoin accumulation, this reaching new all-time highs: more of the BTC supply was now in the hands of LTHs than ever before.

“Previous bull markets were triggered when LTH supply reached between 63.6% and 71.5% although often after many months at these levels,” Glassnode, which produced the data, added in comments.

“LTHs currently hold 66% of the $BTC supply.”

Proportional long- and short-term holder supply chart. Source: Glassnode/ Twitter

Traders bullish on Ethereum after hard fork

On altcoins, Ether (ETH) dominated the conversation amid bullish forecasts for fresh price gains.

Related: Altcoins and DeFi tokens push higher as Bitcoin price falters at $40K

Ethereum’s token could reach new local highs in the coming months after its latest successful hard fork, analysts forecast as strength against Bitcoin continued.

ETH/BTC hit 0.0693 on Aug. 4, the date of the hard fork deployment — its highest in nearly two months. 

A local resistance point, the 0.07 BTC level has yet to reappear since the Bitcoin-inspired market drawdown began in May.

Nonetheless, among altcoins, ETH has exhibited notable strength against Bitcoin, and its hard fork, London, referred to as EIP-1559, should catalyze performance further.

For the short term, however, a chance to consolidate recent gains is on the cards, say traders.

“I’m expecting a short-term top to be happening tomorrow on ETH,” Cointelegraph contributor Michael van de Poppe told Twitter followers Wednesday. 

“Healthy correction after EIP-1559 before the heaviest bull run of them all happens.”

ETH/BTC 1-day candle chart (Bitstamp). Source: TradingView

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