Ethereum rebounds post-sell-off while Bitcoin continues to lag; expert explains why
Key Insights
- Ethereum’s resilience is buoyed by US ETF expectations.
- Bitcoin struggles with key technical levels and market sentiment.
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Bitcoin (BTC) is down by 3% since June 24th, while Ethereum (ETH) managed to stay slightly up from its initial price on Monday, despite the market sell-off on that same day. Hank Wyatt, founder of DiamondSwap, shared with Crypto Briefing that this performance disparity can be attributed to the hype around the upcoming spot Ethereum exchange-traded funds (ETFs) in the US.
Additionally, Wyatt highlighted that there is fear surrounding Mt. Gox payment plan set to start in July, as reported by Crypto Briefing.
“News about the distribution of repayments to creditors caused a mild panic. Both BTC and ETH are influenced by ETF expectations, with analysts noting significant inflows into Bitcoin ETFs. These inflows have been a major driver of BTC’s recent price increases, with ETF issuers buying way more BTC than is produced daily, pushing prices up,” he added.
Despite the current Mt. Gox landscape, Wyatt sees “a lot of potential” for Bitcoin in the second semester of 2024, especially looking at the macro level. Nevertheless, the shorter time frame is still filled with bearish trends.
“BTC has lost multiple key support levels like the 100-day moving average (MA100), 20-day moving average (MA20), 50-day moving average (MA50), and the 100-day exponential moving average (EMA100). The MA50, a crucial bull market indicator, broke down on Tuesday, June 18th. Two days later, BTC tried to rally towards the MA50 level but got rejected at ~$66,500,” explained DiamondSwap founder.
Notably, as analysts such as Bitfinex’s and Rekt Capital believe a local bottom is in, Wyatt underscores the importance of the MA50 level and the breakout of a falling wedge pattern in the daily chart.
“This breakout could be more explosive than previous ones, potentially driving BTC above $72,000. However, given the current sideways movement, I don’t expect significant price changes before Q3,” he concluded.
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