Still upside potential in Bitcoin as ETH faces competition »alt =» »width =» 1214 ″ class = »content- img »/> Source: Adobe / Daniel Prudek

re is still the possibility of a rise in the price of bitcoin (BTC) before the peak of the market cycle, analysts at cryptocurrency exchange Kraken Ella said. Meanwhile, ethereum (ETH) performed strongly recently, but will face tougher competition in the future, they warned.

Commenting on bitcoin’s historical performance in November, Kraken Ella said that it is the best performing month on average, with an average return of 53%. However, the report also warned that volatility should be expected in both directions, with a November average “substantially more volatile” than other months.

Expanding the scope to the full fourth quarter, Kraken said the last quarter of the year is usually “a good quarter for BTC,” with an average return of 119%.

However, the underlying data also showed that there are large differences between the best and worst fourth quarter on record. For example, the fourth quarter of 2018 saw a 44% drop, while the best fourth quarter in history, the fourth quarter of 2010, posted a spectacular 385% return.

png »alt =» »width =» 1774 ″ class = »content-img» /> Source: Kraken Intelligence

Additionally, the exchange also revealed a clue to where we currently are in the bitcoin market cycle by looking at two popular technical analysis indicators.

“Even if it is not known where and when BTC could reach a market cycle high, the BTC high can be observed. Bollinger band (+/- 4.5 standard deviations) and 1 month CSR for more information, “says the report, referring to the Relative Strength Index.

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He added: “Historically, BTC cycle highs have coincided with BTC reaching its upper Bollinger band AND the 1-month Relative Strength Index (RSI) reaching a reading of 96.”

And while the report noted that the monthly RSI is already in ‘overbought’ territory for bitcoin, it also said that history suggests that there is still ‘technical potential to the upside’.

According to the report’s data, the Bollinger Band stood at $ 112,000, while the RSI hit 71.7, with a reading above 70 that is generally considered ‘overbought’.

png »alt =» »width =» 2224 ″ class = »content-img» /> Source: Kraken Intelligence

In terms of ethereum, the same report indicated that ETH’s strong performance in October meant that the asset has now regained ‘band 5’ of a ‘logarithmic regression rainbow’ developed by the exchange.

“If ETH continued to push higher and refrained from returning to band 5, the next major resistance level that ETH could attempt to test would be band 6 at around $ 6,500,” the report said, noting that this would imply a gain of the fifty%. from the October closing price of USD 4,200.

However, in a cautionary note, Kraken’s intelligence team also warned that ETH’s share of the total cryptocurrency market valuation, the dominance of ETH, remains ‘significantly below’ its 20.1% level. May, which marked the previous all-time high for the price.

“This tells us that despite ETH’s rally to a new all-time high, ETH has a smaller market share than last time and may have relatively weaker momentum than its peers,” the report said.

Source: Kraken Intelligence

Meanwhile, other analysts took a more positive outlook on the price of ETH, with Martha Reyes, head of research at Digital Asset Brokerage. BEQUANT, stating in an emailed comment that “ethereum is coming out of the shadow of bitcoin”, with focused use cases, “be it DeFi, NFT, games or metaverse”.

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Additionally, Reyes also pointed to speculations that ethereum could soon have an exchange-traded fund (ETF) backed by futures in the United States.

Also Mikkel Morch, CEO and risk management at the crypto hedge fund. ARK36, who said that ETH is well positioned for more profit now that more institutional investors are entering the digital asset space.

“First, as institutional investors are entering the digital asset market more decisively, they will seek to diversify their portfolios and invest in assets beyond bitcoin. Ethereum, the second largest cryptocurrency by market capitalization and with a strong community and vibrant ecosystem, appears to be its second natural choice, ”Morch said.

At 4:57 pm UTC, BTC is trading at $ 61,123 and almost unchanged in a day and a week, while ETH is trading at $ 4,495 and is not changing in a day, while it is up almost 5% in a week.


Learn more: – Bakkt will support Ethereum alongside Bitcoin – Australian cryptocurrency-focused ETF hit record high, expected spot BTC, ETH ETF

– Big differences seen in banks’ Ethereum valuation as ETH tests the all-time high – $ 20,000 a week in Bitcoin price likely this year, says the author.

– Narratives blur when Bitcoin and Ethereum point to each other’s field. – Another great bank to start offering Bitcoin, Ether and Altcoin services.

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