After making a weekly close that poses the question of whether bitcoin has now made its top for now, a bounce is probably still on the cards. That being said, ethereum does look a better bet.
An ugly wick
Source: Trading View
After making a new local high of $49,000 last week, the bitcoin price descended around 15%, wiping off a huge $7,500 from that high. The rather long wick that the price left behind looks quite ugly, and is another sign that $BTC could have left its high behind it, and is ready to make a descent.
Bitcoin still respecting trend
Source: Trading View
Zooming in on $BTC on the shorter daily time frame, it can be seen that the price did dip out of the upward sloping channel, but looks to be climbing back in currently. In addition, $BTC has respected a trend line that goes back to mid-August. These factors could mean that $BTC will go up first.
Ethereum a better bet?
Source: Trading View
With this in mind, even if $BTC does bounce from here, ethereum does look a better bet, at least for the next few weeks. However, for $ETH to start making ground against its $BTC pair, it first needs to surmount the critical resistance at 0.059.
Critical resistances
Source: Trading View
Zooming in a bit closer, it can be seen just how important this level is, as it also coincides with a downward trend line. The price has already come up against these barriers and is trying to break through. If $ETH does get through here, and is allowed to consolidate, expect some decent gains against its $BTC pair.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/01/bitcoin-bounce-incoming-but-ethereum-better