At the 4H-timeframe scale it can be clearly seen how perfectly correlated are Bitcoin and Ethereum price actions in the middle term.
There are vertical flags with dates and time from the beginning of the observation till the current moment. Starting from the 21th of November you can see each sharp movement duplicates, even IHS patterns were formed in the same manner.
What does it mean?
1. Bitcoin's capitalization and Ethereum capitalization is represented mostly by the same big players now.
2. Once fundamental news arrive and affect the market big players either fix their crypto to stable coins in case they expect drop or enter the market back diversifying their holdings between ETH and BTC in equal proportions.
3. It does not seem like a
collusion it is more likely big players want to diversify, however this now destroys opportunities of diversification.
4. Because ETH and BTC can no longer be used for diversification soon we will see whales choosing other instruments for it.
5. Once new coin is determined ETH will have an inverse correlation with Bitcoin. Moreover Ethereum will face with a sharp value drop once it happens.
Conclusion:
Do not use Ethereum for diversification in the mid or long term. Ethereum is now risky for long term holdings, choose several top-10 cryptocurrencies instruments for it
There are vertical flags with dates and time from the beginning of the observation till the current moment. Starting from the 21th of November you can see each sharp movement duplicates, even IHS patterns were formed in the same manner.
What does it mean?
1. Bitcoin's capitalization and Ethereum capitalization is represented mostly by the same big players now.
2. Once fundamental news arrive and affect the market big players either fix their crypto to stable coins in case they expect drop or enter the market back diversifying their holdings between ETH and BTC in equal proportions.
3. It does not seem like a
collusion it is more likely big players want to diversify, however this now destroys opportunities of diversification.
4. Because ETH and BTC can no longer be used for diversification soon we will see whales choosing other instruments for it.
5. Once new coin is determined ETH will have an inverse correlation with Bitcoin. Moreover Ethereum will face with a sharp value drop once it happens.
Conclusion:
Do not use Ethereum for diversification in the mid or long term. Ethereum is now risky for long term holdings, choose several top-10 cryptocurrencies instruments for it
註釋
It is ETHUSD sorry for a mistype
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Access private PineScript strategies and turn alerts into orders with easy-to-set up bots
Trade smarter with:
skyrexio.com
Trade smarter with:
skyrexio.com
相關出版品
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。