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- Bitcoin sees minor ups-downs while the mean ranges flat throughout the week.
- Consequently, analysts prefer alternatives like Ethereum & Solana
- Bitcoin witnesses a decreased volatility expectations at new highs
- Some analysts believe ETH could hit high and trade at $4900 levels “easily”.
During the course of the week, Bitcoin has seen minor ups & downs while the mean has ranged flat. The same has prompted many active traders to look at other currencies like ETH & Solana which have out performed the cryptoking throughout the week. Currently at the time of writing, Bitcoin ( BTC), Ethereum (ETH) & Solana (SOL) are trading at $61,024, $4,485 & $234 respectively.
According to Ben Mcmillia, an investment officer at IDX insights pointed out that even though their models were tuned to full risk towards ETH in contrast to BTC, they had seen some slowing in conviction buying of the asset.
Investors & traders are believed to be looking for other booming currencies. While the BTC has been trading flat past the week, ETH has rallied by more than 4% and SOL has rallied by more than 23% over the same duration.
According to an analyst at DailyFX, Daniela Hathorn states that since investors are looking for the next big catalyst for another huge rally and absence of such could result in Bitcoin being vulnerable and dip below the $60,000 levels.
However in a contrasting opinion, the crypto investment firm stacks funds mentioned in a report that it expects further growth as the market value to realized value ratio [MVRV] retests the 4.0 figure. Currently at the time of writing, MVRV is at 2.7 levels.
Bitcoin witnesses decreased Volatility
The recent rallies of Bitcoin in 2021 have been way different to its prior bull runs. One significant difference that has been observed was the decrease in volatility expectation.
The volatility expectation is a metric that projects expected price swings in the Bitcoin market.
When the crypto king broke records and achieved its all time high of over $67,000 it was observed that the volatility did not spike, instead witnessed a minor low. The highest spike was witnessed in the month of may when the Bitcoin crashed the most. Such an observation in essence means that the asset has evolved into a more mature investment.
Ether could outperform
Few analysts are extremely bullish on the world’s second largest cryptocurrency by market cap while ETH witnessed its new all time high around $4600 in the week.
According to the global head of technical strategy at Fundstrat, Mark Newton mentioned that despite the weekly & monthly momentum expressing an overbought condition of the token, it shouldn’t be a big deal until the near term numbers show an exhaustion of the upside. The analyst also expects a further upside in ETH ratioed to BTC only if the price resistance around 0.08 is crossed.
The Firm also expects the price of ETH to rally as high as $4,951, with almost no resistance. As things stand, Newton expects a slight outperformance after which it follows a stall. However it is also to be noted that projections could change overnight when a new catalyst enters the market and hence should not be consulted as financial or investment advice of any kind.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
