U.Today – Between 2019 and 2020, the state of the cryptocurrency market today shows a stark contrast. While ETH is experiencing drawdowns, BTC is showing strength, with consistent inflows into spot ETFs for 12 consecutive days, suggesting a difference in investor sentiment between the two top cryptocurrencies.
Currently, Bitcoin is holding its position with a slight optimism. Thanks to a recent bounce from the 100-day moving average, Bitcoin has been able to maintain its position above $62,000. This level has served as an important support and the bullish momentum can continue as long as BTC remains above it.
Significant capital inflows into Bitcoin spot ETFs indicate that investor confidence is rising despite overall market uncertainty. This sentiment is further supported by BTC’s dominance in the options market, where modest call spread option purchases indicate cautious optimism.
However, the decline in early volatility indicates that traders are likely awaiting further clarity on the impending rate cut decisions in September and do not anticipate significant price movements in the near future.
On the other hand, Ethereum is struggling. Over the past eight days, there has been a persistent pullback in ETH spot ETFs, indicating a lack of confidence in the asset. With resistance coming from its 50-day and 100-day moving averages, ETH’s price action has been comparatively sluggish and has failed to sustain above these levels. Moreover, there is not much buying pressure as the RSI (relative strength index) is hovering around the lower 40s.
The market may be cautious about ETH’s short-term outlook given its difficulty in staying above important technical levels. ETH could continue to underperform unless there is a notable change in investor sentiment or a broader market rally as the macro-driven market still favors BTC.
This article was originally published on U.Today
