- Will Bitcoin price recover above $60k?
- ETH/BTC chart points to Ethereum bulls.
- A PBoC official says BTC and stablecoins are “alternative investments.”
Trending News: The State of Bitcoin, ETH/BTC Chart, and Crypto in China
The crypto community is addicted to hopium. Symptoms are visible everywhere.
Analysts are upbeat, shilling projects that are justifiably retreating from tops after impressive Q1 2021.
Will Bitcoin Fall?
Super gains spilled over from H2 2020 to early 2021.
You know it's a bull market when ppl who are long btcusd are mad they're not long ethbtc, ppl long eth are mad they're not long bnbeth, and ppl long bnb are mad they're not long cakebnb, and ppl long cake are mad they're not long safemoon
— Zhu Su (@zhusu) April 21, 2021
Take, for instance, Bitcoin.
While most analysts say the rally will last forever, practical traders post contrarian analysis pointing to a possible correction in the medium term.
— Peter McCormack (@PeterMcCormack) April 22, 2021
One, on Twitter, pointed out the close of BTC/USD prices below the 20-day moving average in the daily chart. He said the Apr 18 trigger marked the beginning of what would possibly be a protracted correction towards $42k in the medium-term.
— Danny Merkel (@ChartingTrends) April 22, 2021
ETH May Thrash BTC
In the meantime, Ethereum appears immune to the downtrend.
For this, Raoul Pal holds that the ETH/BTC price could tear higher. His reasoning is simple: Ethereum continues to outperform BTC since its launch.
To be brutally honest, I stare at the chart of ETH/BTC and I see an enormous rounded bottom with potentially huge breakout just above…. pic.twitter.com/85hfawq0bx
— Raoul Pal (@RaoulGMI) April 21, 2021
Besides, Ethereum—unlike Bitcoin, smart contracts have opened up more opportunities. Within the Ethereum ecosystem, there is crowd-funding, DeFi, NFTs, and now a merger between NFTs and DeFi.
Add that to several upgrades along the line meant to scale the network and even introduce a “burning” feature helping reduce the amount of ETH in circulation.
If 1559 and The Merge were active today, there would have been 839 new ETH issued, and 15,120 ETH burnt. Validators would have received 6480 ETH in transaction fees which when annualized works out to a 69% APR for staking. Nice.
— ⟠🦇🔊 Lamboshi aka Nolan (@L_Nakaghini) April 21, 2021
The result will make ETH sound money.
China: Cryptocurrencies like Bitcoin and Stablecoins are “Alternative Investments”
In China, things are looking up for cryptocurrency. Four years later, after China banned ICOs—of which the majority turned out to be scams, and cryptocurrency trading, an executive of the PBoC said BTC and stablecoins are alternative investments.
Li Bo—the Deputy Governor of the central bank, made those positive comments for the first time. However, their regulatory stance on cryptocurrencies will remain the same. That means, regardless of how interpretations, cryptocurrencies in China won’t be legal tender.
Presently, the PBoC is at an advanced testing stage for the DCEP—a CBDC.
Altcoin Index: Technical Analysis
To gauge whether we are in an alt season as analysts claim, we have to look at the Altcoin index from FTX.
Altcoins have their best foot forward. They are trading within a bullish breakout pattern, recently charting new territories before retracing to spot levels.
The index price has been retreating, dropping below the middle BB but above 4,180, as visible in the daily chart. However, prices are trending inside Apr 18 bear bar—bearish from a volume analysis perspective.
For Altcoins to trend higher, prices must break above 5.33k, unwind losses of Apr 18 as buyers target 5.6k. A close above Apr 2021 highs may see the Altcoin index surge higher towards 8.75k—the 2.618 Fibonacci extension level of the Q1 2021 trade range.
A bullish Altcoin index will mean a stronger ETH, EOS, BNB, and others. If not, lower lows only mean peaks and high chances of broad market corrections.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.