Thread by @MulderSonny

#Ethereum and #bitcoin who will outperform who in the upcoming bull market?
Why is this and what will be the best allocation and investment for you to make in your portfolio?

🧵A thread

#crypto #eth #btc

/1 People talk a lot about the two biggest competitors in the crypto space: Ethereum and Bitcoin.

Two projects with a bright future! For a seasoned investor the question remains: Who will continue to outperform and what allocation should I decide to pick?

/2 When comparing both, the easiest way in doing so is to take a look at the #ETH/#BTC chart. As you clearly see below, the pair has recently run up with Ethereum outperforming Bitcoin. In the last couple of weeks however, the pair has broken a major supportive trendline.

/3 A logical approach would be for us to expect further weakness in the pair unless the pair recaptures the trendline. If it does, we continue higher, but what if it doesn't?

What can we expect if the break is a 'valid break'?

/4 Let's look back a little towards the previous period versus the current run up and what happened there.

From mid '18 to roughly March '21 we clearly see an accumulation forming on #ethereum. All points are mentioned on the chart for your reference.

/5 After forming a classical #Wyckoff accumulation pattern, #Ethereum followed through in what we call 'Phase D' and had a bullish outbreak which translated in Ethereum outperforming Bitcoin for a short period of time, taking the pair to new highs.

/6 The new highs correlated with the 61.8% fib retracement which equals a bear market rally and also correlated with a 50% fib retracement of our top to bottom since June '17.

2 major levels that occur many times in #crypto

/7 What happens after that run up,dictates if we have seen our local top and if we're entering a distribution or potentially a re-accumulation.

Price reactions and volume show us the way forward and are crucial indicators for the identification of the correct pattern.

/8 The volume pattern clearly shows weakness and thus I belief we are currently in the midst of a re-accumulation where I expect one more 'test' or downside move towards the low of the range or even breaking it and from there take of towards new highs.

/9 I'd like to add that volume is showing us the big players trying to test the lows of the range but failed in making a significant break (SOW). Testing the sellers and buying pressures aligns with re-accumulation behavior.

/9 Prior moves took us upwards to the 2.0 fib extension level or even higher. My expectations is that after this 'test' and last push down, we will continue a break upwards to the resistance zone around 0.105

/10 My personal conviction tells me #ethereum is likely to outperform #bitcoin very soon. After an initial first push from bitcoin vs ethereum, ethereum will gain traction and perform better near the end of the move as it did in 2020 as well.

/11 My portfolio remains strongly positioned in a majority stake in #ethereum opposed to Bitcoin. I would give current weight to at least a 60/40% eth vs btc.

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@MarcDeMesel here a thread made for you and a weekend extensive analysis why I belief @Nakamotolisk won't be correct in his projection. I'm open to hear why it is a distribution but this is my opinion about it.