The most recent cryptocurrency market sell-off wasn’t as bad as most enthusiasts thought and has already recovered more than $100 billion in market capitalization. One of the most significant factors of this pullback is the loss of dominance for Bitcoin which stands at only 63.6% while many altcoins are thriving. This seems to be a significant indicator of the upcoming alt season.
Ethereum has been outperforming Bitcoin significantly in the past two days and it’s about to see another breakout on the ETH/BTC chart. XRP price on the other hand remains flat.
Bitcoin price recovers from a massive dip and targets $37,000
On the 4-hour chart, bulls have managed to push BTC price up to 33,826 and now are looking to establish a higher low compared to the local bottom of $28,850. Using the Fibonacci Retracement indicator we can find out several key targets on the way up.
BTC/USD 4-hour chart – TradingView
So far, Bitcoin price already got rejected at $34,000 which is the 38.2% Fib level. The next potential price target if the other resistance level is broken would be $37,000 which is the 61.8% Fib level.
Ethereum price signals start of alt season
The long-awaited alt season could be coming soon as Bitcoin’s dominance fades away and Ethereum takes the lead. ETH price is currently trading at $1,247 and outperforming BTC. On the ETH/BTC chart, we can see a clear ascending triangle pattern which is on the verge of a breakout in favor of Ethereum.
ETH/BTC 4-hour chart – TradingView
Additionally, on the daily chart, and unlike Bitcoin, Ethereum price did defend the 26-EMA and has climbed above the 12-EMA again. This, once again, suggests that ETH is far stronger than Bitcoin at the moment.
ETH/USD daily chart – TradingView
The Eth2 deposit contract address holds 2.8 million ETH, worth around $3.5 billion at current prices. It seems that the recent sell-off hasn’t stopped more investors from locking their coins inside.
XRP price can’t seem to revive
We will not extend much talking about XRP price because it’s extremely flat and remains trading sideways. Trading volume has fallen to a low not seen since December 14, 2020. The most important levels for XRP holders are $0.30 to the upside and $0.20 to the downside. A breakout or breakdown of these two levels would suggest a clear shift in momentum.
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