As evidence of a bullish breakout, the Bitcoin-to-ether ratio has surpassed its 50-day moving average.
One chart expert anticipates BTC, the most valuable cryptocurrency by market cap, to remain quite resilient as Bitcoin (BTC) and ether (ETH) trend downward amid persistent concerns over FTX contagion.
After taking into account the recent rise of the Bitcoin-ether ratio over the 50-day simple moving average, Katie Stockton, founder, and managing partner of Fairlead Strategies stated in a note to clients that “we expect Bitcoin to outperform in the next months” (MA).
In light of ETH’s newly discovered deflationary cryptocurrency appeal, numerous fundamental analysts disagree with Stockton’s prediction and predict that ether will outperform Bitcoin.
On Sunday, the Bitcoin-ether ratio rose over the 50-day moving average and was 14.50 at the time of publication.
One of the most popularly followed technical lines, the 50-day moving average (MA), has typically worked well as a breakout signal. Three of the last four rises above the average for the ratio resulted in significant gains.
The most recent breakout supports the bullish “higher low” of 12.70 that was established earlier this month. When selling stalls at a price low higher than the previous low, a higher low is produced, and this is regarded as the first indication of an oncoming bearish-to-bullish trend reversal.
After posting a higher low earlier this month, the Bitcoin versus ether ratio “has cleared the 50-day MA,” according to Stockton. The ratio’s next barrier is at the 200-day moving average.”