A crypto strategist who accurately called Bitcoin’s collapse below $80,000 believes that BTC’s long-term uptrend will remain intact if it stays above a key price area.

In a new strategy session, pseudonymous analyst Cheds tells his 49,800 YouTube subscribers that Bitcoin appears to have broken out of a W pattern on the four-hour chart.

A W pattern is typically seen as a bullish reversal structure, as it suggests that an asset has printed a price floor after bouncing from a key support level twice.

“We had a break of the W and then a throwback, a throwback being a bullish retest from above. This looks pretty conducive, and this type of price action tells me, ‘Okay, we might be front running $72,000.’

Giving me a little bit of a confidence was a shift in equities markets, and the idea that price was at the MA (moving average) 50, and that’s been support.”

Cheds also says that Bitcoin will likely see higher prices as long as its immediate support level between $78,500 and $81,000 holds.

“Regain $81,000 and we’re back in business… Back above $81,000, we’re back with the idea of regaining that low time frame pivot corresponding with the high time frame support at the MA50, and with the idea that the bulls are going to recapture the trend, which is the rising MA200.”

At time of writing, Bitcoin is trading at $85,301.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Despite rolling out a large number of upgrades and innovations, the Ethereum price continues to lag behind Bitcoin (BTC) by a wide margin. Reports reveal that ETH has suffered a staggering 77% price crash against BTC — a decline likely fueled by a mix of technical, macro, and sentiment-driven factors. Notably, On-chain analytics platform, Santiment has now pinpointed and broken down the key reasons behind these price struggles. 

Ethereum Price Nosedives Against Bitcoin

On April 11, Santiment released a detailed report on Ethereum, highlighting its almost four-year underperformance and the reasons behind it. Ethereum, once revered as the cryptocurrency most likely to dethrone Bitcoin, has recently suffered a brutal price decline when measured directly against BTC.

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According to Santiment’s on-chain data, Ethereum has crashed by approximately 77% against Bitcoin since December 2021. While the dollar value of ETH hasn’t completely collapsed, especially compared to other altcoins, the long-term BTC/ETH ratio still paints a gruesome picture for Ethereum holders. 

Notably, Ethereum has also failed to recover anywhere near its November 2021 all-time high of $4,760. In contrast, Bitcoin has surged ahead, reclaiming much of its market dominance and outpacing ETH across almost every timeframe. 

This disparity has led many traders and former maximalists to compare ETH to a “shitcoin.” Even worse, various mid to low-cap altcoins have already outperformed Ethereum over the short, mid, and long-term timeframes, causing further embarrassment for the world’s second-largest cryptocurrency by market capitalization. Based on Santiment’s report, the ETH/BTC price ratio chart alone is enough to trigger doubt and uncertainty among long-term holders.

Behind The Scenes Of Ethereum Price Struggles

Beyond price action and market volatility, Santiment reveals that there are fundamental reasons for Ethereum’s sluggish performance over the years. Some of the major criticisms that analysts and traders have pinpointed include technical, sentimental, and regulatory issues.

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Ironically, Ethereum’s Layer 2 solutions are one of the key drivers of its underperformance. L2 solutions like Arbitrum, Optimism, and zkSync are reportedly cannibalizing activity on the mainnet, taking investments from ETH while spreading investor attention thin. 

Secondly, Ethereum seems to struggle with complex roadmaps and communication, which has led to investor confusion. Major updates like The Merge and Shanghai have been difficult for investors to comprehend, making ETH feel less accessible than BTC. 

Thirdly, users remain frustrated by Ethereum’s relatively high gas fees and the slow rollout of key upgrades. This has pushed them toward more affordable and faster alternatives, significantly reducing adoption.

Another primary reason for Ethereum’s crash against Bitcoin is ongoing regulatory concerns. Unlike Bitcoin, which has a more established legal precedent, Ethereum faces constant uncertainty about whether it could be labeled a security. 

Other points include ETH’s lack of investment appeal. While Bitcoin maintains the title as a stable digital gold, Ethereum appears to be caught in between, having no clear or attractive investment narrative. Moreover, newer blockchains like Solana and Cardano are also attracting a significant number of users with cheaper and faster solutions, ultimately pulling investments away from ETH.

The final reason Santiment has identified for Ethereum’s long-term price descent is rising selling pressure. Post-upgrade withdrawals of stakes ETHs have created steady sell-side pressure, limiting growth and momentum compared to Bitcoin.

Featured image from Unsplash, chart from Tradingview.com

Real Vision’s chief crypto analyst, Jamie Coutts, is highlighting the outperformance of Bitcoin (BTC) amid a correction experienced by stocks and crypto assets.

Coutts says that even though Bitcoin has traditionally been more volatile than stocks, it has recently witnessed a relatively lower level of correction than would be expected based on its historical levels of price swings.

“Folks don’t understand what is happening with Bitcoin during this risk-asset panic. BTC with 2.5x the volatility of the S&P 500 experienced a drawdown of 28% vs. the S&P 500’s 19%. That is a massive OUTPERFORMANCE.

Perhaps it’s not just BTC’s strength, but a reflection of the increasing fragility of the fiat system and its asset markets – complex systems inherently trend toward entropy/chaos. Bitcoin is mirroring this unraveling.”

Going forward, Coutts says that Bitcoin will grow in importance as two of its use cases gain prominence across the globe.

“What is happening right now is epic. Things are breaking. The fiat fractional reserve credit-based system’s fragility is on full display, yet again. Look through the next couple of days and understand Bitcoin’s ascendancy as a global settlement layer and collateral asset is accelerating. Fast.

Before it was the plebs who understood this, this time it will be nation states.”

Bitcoin is trading at $83,227 at time of writing.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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