ETHBTC's Undefeated 30% Candles

Aug 18, 2023

IN TODAY’S REPORT

What we cover: Technical View edition. ETHBTC's 30% monthly candles.

TODAY’S TECHNICAL VIEW

Amid The Selling Pressure, ETHBTC’s 30% Candles Remain Undefeated

Much has been written about Bitcoin’s insanely impressive performance over the past 10 years — and for good reason. Bitcoin’s cryptographically-enforced supply, borderless and decentralized nature, and unabated network adoption have utterly disrupted the perpetual monetary licentiousness of central banks and the copy-paste culture which has dominated the new millennium.

With all due respect to the king crypto, however, it’s our conviction that the number two crypto Ethereum will set the new performance standard in the future. While this statement assumes continued progress toward Vitalik Buterin’s ambitious Ethereum road map, the emergence of a few killer apps, and future public-facing UX’s so seamless that few even notice it’s no longer web 2.0, we believe that these are in fact reasonable assumptions post-2022.

Today we share an observation about Ether relative to Bitcoin and its implications for Bitcoin dominance, Ether, and the crypto market in general.

`ETHEREUM/BITCOIN (ETH/BTC). Monthly Chart.`

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While Bitcoin has dominated every other asset class and even highly noteworthy stocks like AAPL and TSLA over a several year period, there’s one asset which has been steadily gaining momentum: Ethereum (ETHUSD).

Our favorite reflection of this trajectory is the monthly ETHBTC chart and its undefeated 30% monthly candles. The observation is relatively simple, and yet we haven’t seen it stated elsewhere: No ETHBTC monthly candles which have gained at least 30% at the start of an upswing have ever seen their low violated. Ever.

Incidentally, this also applies to the opening prices of each of these pivotal candles. Indicated by dotted horizontal lines on our chart, the open of an expanded range candle — technically a Controlling Candle as we’ve defined in a recent REKTelligence Report — reflects immense demand. In this case, the demand indication is on a relative basis to Bitcoin.

We treasure Bitcoin, truly. It objective function — 21,000,000 that’s it! — is unassailable. In a world of continued devaluation of time, energy, and resources, this is a thing of immense beauty.

But Ethereum will continue to gain traction on Bitcoin’s market cap. A compliment to Bitcoin’s (apolitically) conservative nature, Ethereum’s (apolitically) progressive nature will lead to Ethereum’s increasing adoption from this day forward.

THE TLDR

A Few Key Takeaways

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✔ With all due respect to the king crypto, however, it’s our conviction that the number two crypto Ethereum will set the new performance standard in the future
✔ No ETHBTC monthly candles which have gained at least 30% at the start of an upswing have ever seen their low violated. Ever. 
✔ A compliment to Bitcoin’s (apolitically) conservative nature, Ethereum’s (apolitically) progressive nature will lead to Ethereum’s increasing adoption from this day forward

peace_love_crypto

-DB

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