The Bitcoin price remains in consolidation below $60k, struggling to overcome resistance at $55k.
As of writing, Bitcoin is trending lower versus ETH and the USD.
ETH is on a tear and has printed above $2.5k to new all-time highs. ETH buyers appear to be angling for a comprehensive breach of $3k.
Will ETH Flip BTC?
In a recent review, JP Morgan–known for its anti-crypto and Bitcoin stance earlier on–assesses that Ethereum will eventually flip BTC.
They cite the growth of DeFi and other exciting innovations like NFTs that rely on smart contracting, a feature that’s not available in Bitcoin.
Over the years, the bank observes, Bitcoin has become more of a store-of-value, not money as initially designed.
On the other hand, ETH is fuel for the Ethereum ecosystem, acting as a medium of exchange.
Bitcoin Dominance Falls below 50%
While this happens, Bitcoin’s dominance is falling.
On Apr 28, it dropped below the 50 percent psychological mark for the first time since June 2018.
Analysts say this is due to BTC bulls’ reluctance and the flat-lining price action of the past few days following the unexpected crash of Apr 18.
However, all is not lost. Nexon, a video gaming giant in Japan, now holds Bitcoin.
The public company said it bought $100 million of BTC at an average price of over $58k, translating to just two percent of their total cash reserves.
Bitcoin Price Analysis
The BTC/USD price is trading in a tight $3k range capped by the 20-day moving average on the upside.
Technically, BTC bulls stand a chance. From an Effort-versus-Result perspective, buyers can build momentum and confirm the double-bar bullish reversal pattern of Apr 25 and 26.
Notice that prices are still trending within this buy zone with apparent inactivity in the past three days.
Accordingly, as BTC/USD price action is laid out, buyers may find a reason to buy the dips with immediate targets at $60k.
A high-volume breach of $62k would trigger the next wave of FOMO, possibly propelling BTC/USD to $94k—the 1.618 Fibonacci extension level of the Q1 2021 trade range.
On the flip side, losses below Apr 25 may see BTC crater back towards $42k—in a retest of Jan 2021 highs.
Chart Courtesy of Trading View
Disclosure: Opinions Expressed Are Not Investment Advice. Do Your Research.
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