The market is facing extreme volatility as major assets, Bitcoin (BTC) and Ethereum (ETH), are going through crucial accumulation phases. However, Bitcoin has performed better over the past ten days, standing out amidst the volatility.
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The ETH/BTC chart reveals this shift. At the time of writing, the price of Ethereum in terms of Bitcoin was 0.043, its lowest level since April 2021. This highlights Bitcoin’s dominance in the current market environment.
As prices move and investors seek an advantage, important data reveals a clear preference for Bitcoin over Ethereum in recent months. While the market may appear calm, history shows that things can change suddenly. Therefore, examining the data and fundamentals related to the chain is vital to anticipate potential shifts.
ETF Flows Show Bitcoin Dominance
Traditional investors are showing a growing preference for Bitcoin over Ethereum, as evidenced by crucial data released by Farside Investors, a London-based investment management firm. According to their reports, Spot Bitcoin ETFs Ethereum ETFs have seen five consecutive inflows, while Ethereum ETFs have seen five consecutive days of outflows.
While some market participants believe that the outflows from Ethereum ETFs are due to selling pressure from Grayscale, analyst and investor Lark Davis believes that these outflows are due to selling pressure from Grayscale. Reply to this argumentHe points out that “about 30% of ETH has already exited Grayscale’s $ETHE ETF,” meaning the outflows are driven by broader market sentiment rather than Grayscale’s influence.
BlackRock Now Has More Cryptocurrencies Than Grayscale
Blackrock has now surpassed Grayscale in terms of its total on-chain holdings. This makes Blackrock the largest entity tied to the Arkham ETF.
BlackRock: $22,143,715,559
Grayscale: $21,996,062,828 pic.twitter.com/YrPZdrMObk– Arkham (@ArkhamIntel) August 22, 2024
This trend confirms Bitcoin’s undeniable dominance in the market, as traditional investors continue to favor BTC over ETH during times of uncertainty and volatility.
BTC Technical Levels to Watch
Bitcoin price is currently trading at $61,280 at the time of writing. It has been in a consolidation phase since August 8, fluctuating between the local resistance at $62,729 and the local support at $56,138 on the 4-hour time frame. This period of sideways trading has kept the market in a state of anticipation as investors closely watch the next important move.
To confirm the upside, Bitcoin needs to break the $63,000 level and close above the 200-day moving average (MA), a crucial indicator that typically acts as support during bull markets and resistance during periods of deep corrections. The 200-day moving average has been a crucial level for determining the overall trend, and a reversal of this level would signal a potential continuation of the bull market.
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While Bitcoin’s current market dominance is clear, it’s important to note that this dominance may not last forever. The market remains dynamic, and shifts in sentiment or broader market conditions could change the landscape at any time.
Featured image created using Dall-E, chart from Tradingview.com
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