Bitcoin to Outperform Ether in Coming Months, Chart Analyst Says
"We expect bitcoin to outperform in the coming months," Katie Stockton, founder and managing partner at Fairlead Strategies, said in a note to clients after considering the bitcoin-ether ratio's recent move above the 50-day simple moving average (MA).
The bitcoin-ether ratio crossed above the 50-day MA on Sunday and stood at 14.50 at press time.
The 50-day MA, one of the most commonly tracked technical lines, has historically been reliable as a breakout point. The ratio's three of the previous four moves above the average brought sharp gains.
The latest breakout validates the bullish "higher low" of 12.70 created early this month. A higher low is formed when selling runs out of steam at a level higher than the preceding price low and is considered the first signal of an impending bearish-to-bullish trend change.
"The bitcoin versus Ether ratio has cleared the 50-day MA after making a higher low earlier this month," Stockton said. "Next resistance for the ratio is at the 200-day MA, a breakout above which would target the June highs, with little resistance in between."
At press time, the chart showed the 200-day SMA resistance at 14.82, ahead of the Oct. 13 high of 15.74.