Ethereum ($ETH) and Solana ($SOL) vs. Bitcoin ($BTC): Have They Just Hit Their Bottom?
As the crypto bull market moves into its final stage, altcoins have still not entered a typical, explosive altseason. Bitcoin ($BTC) continues to outperform. However, have Ethereum ($ETH) and Solana ($SOL) now hit bottom against their $BTC pairs?
Bitcoin Dominance breakdown confirmation
Source: TradingView
The chart to watch for the first signs of any big altcoin movement is Bitcoin Dominance (BTC.D). An ascending wedge that has been forming since June 2022 looks to finally be breaking down. Domination broke below the end of the wedge and it looks like the break may be confirmed. Traders and investors could then look for a lower low to take dominance below 54.6%, with an eventual target of 48% down to 40%.
$ETH at huge support against its $BTC pair
Source: TradingView
$ETH is at a very critical point against its $BTC pair (ETH/BTC). A long-time descending channel has taken $ETH to a hugely important horizontal support level at 0.036 BTC. If this support were to fail, and also the coincidence of the ascending bull market trendline, it would likely be game-over for $ETH - at least until the start of the next bull market.
A bounce must happen from this current level, and given the weight of the support, this really should happen. That said, the Stochastic RSI momentum indicator at the bottom of the chart has just recorded a turn down of the indicator line. This line is very likely to continue down, with a last chance to bounce at the 50.00 level. This last chance must be taken.
$SOL ready for massive bounce against $BTC
Source: TradingView
Compared to ETH/BTC, the SOL/BTC chart is incredibly bullish. What initially looked like a bull pennant, broke down in early December after being rejected from its upper trendline. The price carried on down and came to rest on top of the massively important horizontal support level of 0.00186 BTC.
It now appears that this could also be the bottom of a bull flag, and if this is the case, a breakdown wouldnt have occurred. The concurrence of the bull flag trendline and the horizontal price level are acting as massive support.
It would be expected that $SOL continues to bounce from here, with a climb back to the top of the bull flag and a potential breakout from there back to all-time highs.
A further factor in favour of $SOL is the Stochastic RSI at the bottom of the chart. The indicator lines have hit the bottom and are just starting to turn upward. The momentum for $SOL over $BTC is likely to rise steeply. Watch this pair closely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Text source: Crypto Daily™
