According to an analysis that appeared on the TradingView website, it is possible that there will be new buying activity with regard to bitcoin.
Buy signals on bitcoin
The analyst took as a reference point a chart comparing the price of BTC and the S&P 500 index which is now at an all-time high.
“Right now, the ratio is testing the previous all-time high from the end of 2017. The same can be said for both the TOTAL crypto market cap, and the TOTAL market cap (minus Bitcoin )”.
In contrast, according to the trader, it is the altcoins that are in danger.
“Historically, purchasing Bitcoin instead of buying into SPX has been a good idea near this yellow trendline, even if it drops below briefly, as it did during the COVID crash. You can observe that the break of the yellow downtrend in 2020 resulted in a massive period of outperformance for Bitcoin against legacy markets – with BTC outperforming SPX by roughly fivefold between October 2020 and March 2021”.
Ethereum: high probability of a bear market
In line with what was written in the previous analysis on Bitcoin, Ethereum would be in a bear market phase along with the other altcoins.
Another TradingView analyst explains:
“The On Balance volume is a great indicator for determining what is going on with the total volume situation and helps measure the tension between buyers and sellers. It is a bit harder to use divergences with crypto as the process keeps adding new supply but crosses can be very important, especially if you have an exchange where you can somewhat trust volume data. As you can see the OBV has slipped the 10 EMA and is now leaning heavily upon the 20. Very shortly I expect the prediction on the chart and it proceeds in an exceedingly bearish manner”.
LINK is in a bull market
The only one among the altcoins that seems to be in a positive phase instead is Chainlink (LINK).
“After hitting the top of the channel two months ago, LINK is currently moving towards the lower support of the channel”.
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