The holidays are now done and over, and Santa has headed back to the North Pole to wait for next year to begin bringing gifts once again. However, if the ETH/BTC price chart is any indication, Ethereum holders may get a belated gift early in the new year, with a massive break of overhead resistance.
And if Ethereum does indeed break out against Bitcoin, it could kick off a short-lived alt season, where the altcoin market as a whole outperforms the leading cryptocurrency by market cap.
ETH/BTC Building a Base, Ready To Take Out Resistance
Throughout 2019, altcoins like Ethereum, Ripple, and Litecoin bled their invested capital out and into Bitcoin, causing most altcoins to take a dive in their BTC ratios. Crypto investors capitulated in droves, further fueling the brutal selloff.
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During this time, both Bitcoin and BTC dominance – a metric that weighs the first-ever cryptocurrency against the rest of the crypto market – rose steadily, reaching what now looks to be a peak.
Now that things appear to be reversing, Ethereum looks ready to outperform Bitcoin according to one crypto analyst’s take on ETH/BTC charts.
Expecting this $ETH consolidation to break upwards.
This ~0.0184 resistance has been tapped more times than $BTC has been forked. pic.twitter.com/cGu7hjLQxB
— Hsaka (@HsakaTrades) January 5, 2020
In an accompanying chart, Ethereum can be seen building a base, with repeated attempts at breaking back above resistance. This resistance is expected to break, giving way to a strong rally in the number two cryptocurrency by market cap.
Ethereum Could Lead Altcoin Market in Rebound Against Bitcoin
But it may not just be Ethereum ready to outperform Bitcoin. The number three crypto by market cap, XRP, broke out against BTC and USD this morning, causing the asset’s price to rally over 10%.
Despite the rally, for a change, no one in the crypto community is talking about an alt season – a period of time when altcoins greatly outperform Bitcoin on their ratios. Last year, after each glimmer of any gains in altcoins against BTC, an alt season echo chamber would begin.
But these would be short-lived and altcoins would go right back to suffering further and setting new lows. It became a bit of a meme to talk about alt season, to the point where most traders and analysts won’t even utter the words anymore without fear of being ridiculed or ridiculously wrong.
Related Reading | Crypto Comeback: After Two Years of Bear Market, Bitcoin And Ethereum May Be Ready To Rebound
However, these sort of things happen in financial markets when it’s least expected. After two full years of decline, crypto investors may be at this point expecting the worst, but it also the point where the worst may be behind them and things start to turn around once again.
Featured image from Shutterstock
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