David Lifchitz, chief investment officer at ExoAlpha — a Paris-based investment management service believes Bitcoin is staring at the possibility of outperforming Ether in the short term with a potential bounce in the BTC/ETH pair suggesting Bitcoin could sprint past Ether in the next market rally.
In detail, BTC/ETH compares the trend momentum of Bitcoin and Ether. A lower reading suggests that Bitcoin’s price is rising slower than Ether’s. Conversely, a higher BTC/ETH ratio indicates that the Bitcoin price momentum is gaining an edge over Ether.
Of late, Ether appeared like a heightened version of Bitcoin. When the BTC/USD exchange rate spiked, the ETH/USD exchange rate rallied but with higher margins. Similarly, when BTC/USD went down, ETH/USD plunged more.
The readings pointed that the dramatic difference between Bitcoin and ETH price momentum started flattening after the May 19 crash. Lifchitz called it yet another sign that Bitcoin would become more valuable than Ether.
Meanwhile, Lifchitz reminded that the BTC/USD ratio’s relief bounce would do little in offsetting the descending channel pressure. Therefore, the ratio may continue to head lower after it tests the channel’s upper range.
Full article on Cointelegraph.