Crypto Assessment
Bitcoin and Ethereum fell about 5% overnight
The crypto market fell about 5-6% overnight. This includes Bitcoin and Ethereum also falling similar levels. Being invested in Bitcoin and Ethereum I have been tracking these closer than the others. Bitcoin reached a high of close to 67k and then has been bobbling between 60-64k for a while until the overnight swoon. Ethereum has still not been able to take out it’s high.
Looking at the chart for Bitcoin there could be some short-term concern. I see that the Bitcoin price has crossed below the 10-day and the 20-day moving averages with this overnight weakness. Given the volatility in crypto markets this may mean nothing as the Bitcoin trend is still bullish and it is still up +39% over the last 1 month. The RSI stands currently at 53 on the daily chart. So, there is room for price to go up.
The Bitcoin dominance still stands above 45% which is healthy. It had fallen to around 41% in September. The Bitcoin dominance indicates the Bitcoin market cap as a percentage of total crypto market cap. Not a big indicator of anything other then just being interesting.
Note that the Bitcoin total market cap is still well above the iconic $1T mark currently at around $1.11T. The total crypto market cap is around $2.46T.
Looking at Ethereum chart, it has also fallen about 4% but the price trending looks a bit better than that of Bitcoin. The price has just crossed below the 10-day moving average but still above the 20-day. The RSI is at 58 on the daily chart so there is definitely room for price to go up further.
Ethereum is still trading above the psychological 4k mark. It’s market cap is around $470B currently. The Ethereum price trending is bullish and it has returned +31% over 1 month.
Note that the crypto markets trade 24x7 and savvy technical analysts use much more granular chart timeframes to assess trends than what I do. I just like to keep it simple for myself to get a general idea. In the end no one really can predict what will happen next. We can only assess what is happening now and then define probabilities.
Full disclosure I hold crypto as a long term investment. I am looking for price appreciation over a 3-5 year time horizon. I have been successful in making crypto about 30% of my overall portfolio. And 99% of my crypto holdings are in Bitcoin and Ethereum.
There is lot of discussion between Bitcoin and Ethereum enthusiasts as to which is more valuable. I think both are going to grow in value and market cap. They have their individual unique features. I like to think that
Bitcoin will solve world hunger
Ethereum will solve world trade
For folks who like to trade Bitcoin and Ethereum for shorter term as well, this chart of BTC vs ETH could be interesting.
This tells us how many ETH equals 1 BTC. We can see the current number is 14.69. If one looks at the trend of this chart, we can say that over the last week or so Ethereum has been performing better than Bitcoin.