Bitcoin to continue to outperform Ethereum, analyst says

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Crypto analyst Benjamin Cowen said that Bitcoin will continue to dominate and Ethereum will not perform as strongly, always with smaller gains.

He noted the recent downward break of the ETH/BTC pair. He suggested that the Ether-Bitcoin pair might be testing the trendline that served as support in October 2022, March 2023, June 2023 and September 2023. Although currently beneath the wedge in November 2023, it could present a significant resistance level.

Cowen advised caution, emphasizing that even if ETH/BTC moves above the trendline, it will face multiple resistance levels to the upside. Successfully converting these levels into support is essential for a convincing reversal of the downtrend.

He further said there are many resistance levels, regardless of whether they are depicted horizontally or analyzed differently. ETH/BTC faces a substantial challenge in overcoming these resistance levels for a meaningful reversal.

As of now, ETH/BTC is priced at 0.05578 BTC, equivalent to $2,068.80. Meanwhile, BTC/USDT is valued at $37,112, according to CoinGecko.

CryptoCon noted that BTC had surpassed a significant resistance level, the Fair Value Layer. This breakthrough coincided with Bitcoin’s price reaching $38,000 this week, potentially driven by the expectation of a Bitcoin ETF approval. CryptoCon’s analysis suggests that if this positive momentum continues, BTC could climb beyond $60,000 with minimal resistance until it reaches $61,156.

Meanwhile, Ethereum climbed to nearly $2,100, crossing the $2,000 level for the first time since mid-July. Reports of BlackRock planning to apply for an Ethereum-based ETF might have contributed to Ethereum’s upward movement.

This surge, fueled by expectations of a spot Bitcoin ETF approval that has boosted cryptocurrency prices and related stocks, could be part of a larger upward trend in the crypto sector. Nevertheless, altcoins such as XRP, DOGE, UNI and XLM saw declines, possibly because of a temporary pause in capital rotation toward smaller tokens.

Federal Reserve Chair Jerome Powell recently addressed the Economic Club of New York, offering insights into the current state of the U.S. economy and monetary policy. The U.S. economy is facing a crucial point, with improving inflation and rising Treasury yields sending conflicting signals about the future of monetary policy. Powell’s statement signals that the Fed may continue its tightening cycle, contrary to recent market expectations of a more dovish approach.

Bitcoin to reach $56,000 with approval of BlackRock Spot Bitcoin ETF

In an October report, Matrixport predicts that BTC could reach $56,000 upon approval of a BlackRock spot Bitcoin exchange-traded fund (ETF).

Matrixport projects a “conservative estimate” of $42,000, considering the assumption that 10 to 20 percent of gold ETF investors will invest in a spot Bitcoin ETF.

“We can estimate potential inflows of $12-24 billion into the Bitcoin ETF. While the market cap of GBTC is currently only $17-18 billion, it reached a peak of $44 billion. Therefore, our estimate of $12-24 billion is relatively conservative,” Matrixport said.

On June 15, BlackRock applied for a spot Bitcoin ETF, leading to an increase in Bitcoin’s price from $24,800 to surpass $30,000 within the subsequent seven days.

However, the SEC has postponed several ETF applications, saying that it needs more time to consider and will designate a longer period for review.