September 2, 2021
Cryptocurrencies: Daily Update
Although many outlets and experts have already started proclaiming the new cryptocurrency bull-market, technically we aren’t quite there yet. Bitcoin (BTC) catalyzed the current market recovery starting on July 21st, but still has to see its 50-DMA move back over the long-term 200-DMA before you could objectively say that the crypto market is in full swing.
Bitcoin currently makes up 42% of overall market cap, with the next biggest cryptocurrency being Ethereum (ETH) holding roughly 20% of overall cap. Despite BTC being the biggest benchmark of the overall market, we have had brief periods throughout history in which ETH actually serves as the leading influence over the altcoin market. In fact, we are seeing exactly that happen right now.
Ethereum’s drastic outperformance of BTC since July 21st has brought top ranking altcoins and defi projects such as Solana (SOL) and Cardano (ADA) to all-time highs, with plenty of momentum prepared to launch the altcoin market even higher.
As BTC has run into a major accumulation range between $46,300 and $50,000, Ethereum has already sprung up to higher levels. ETH had been stuck between $2,950 and $3,400 for the last 3 weeks, until price shot through resistance all the way to $3,800 yesterday.
So, with BTC sitting just under the $50,000 resistance level and ETH already clearing its previous resistance, we can expect a powerful move by Bitcoin in the next few days.