Strong selling can be seen in altcoin markets during the past few weeks. People moved money to BTC to collect the ‘free fork money’. Large losses can be seen across the board versus bitcoin with both ETH and Dash making new lows.
New Lows for ETH/BTC
The ETH vs BTC ratio got even lower this week, falling to 0.03712 earlier today. We have since bounced back somewhat and the pair is quoted at 0.04047 BTC right now. This is a loss of close to 20 percent since our last update.
As noted in that article, before the last fork called ‘bitcoin gold’, traders dumped everything to buy BTC in order to receive the ‘free dividend’. Back then we traded as low as 0.04661 BTC going into the bitcoin fork. Now we have a similar situation with another fork (potentially) coming on block height 494784. Current estimates put the fork in the morning on November 16th.
The downtrend started with the break of the 0.06626 support level continues. To end it, the bulls have to push ETH above the 0.05545 swing high. A move above the 0.06162 swing high is needed to switch the trend to bull. On the longer-term charts, we see a mixed picture. Like the daily, the weekly is in a downtrend. But the monthly is still in rally mode. However, note that monthly trends take many months to establish and unwind.
Dash Breaks Important Support
Dash prices broke an important support area to hit a low of 0.03452 earlier today. As we said last week, the 0.0442 double bottom coupled with another former swing low at 0.043 BTC formed a strong support area, which should now turn to resistance. We are trading at 0.03737 at the moment, down by close to 22 percent since last Thursday.
The downtrend is still in place here. To end it we need to see a breakout above the 0.05402 BTC swing high. A move above the 0.05620 swing high could start a new rally in DSH/BTC. On the longer-term charts, we see the same situation as in ETH/BTC. The weeklies are signalling more losses while the monthly is keeping the bullish bias.
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