Ethereum ($ETH) and Solana ($SOL) vs. Bitcoin ($BTC): Have They Just Hit Their Bottom?

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As a seasoned researcher with years of market analysis under my belt, I’ve seen my fair share of crypto bull runs and bear markets. The current situation with Bitcoin ($BTC) outperforming altcoins has been a common theme throughout these cycles. However, the question at hand is whether Ethereum ($ETH) and Solana ($SOL) have hit their bottom against Bitcoin.

In the latter stages of the cryptocurrency bull market, altcoins haven’t yet experienced a typical, intense altcoin surge. Instead, Bitcoin ($BTC) continues to lead in terms of performance. The question remains: Has Ethereum ($ETH) and Solana ($SOL) reached their lowest point when compared to Bitcoin ($BTC)?

Bitcoin Dominance breakdown confirmation

Keep an eye on Bitcoin Dominance (BTC.D) as a crucial indicator for significant altcoin shifts, as it appears to have formed an ascending wedge since June 2022 and could be on the verge of breaking down. The dominance has dipped below the end of the wedge, hinting at a potential confirmation of this breakout. If so, traders and investors may seek a lower low that takes dominance below approximately 54.6%, with a long-term target ranging from 48% to 40%.

$ETH at huge support against its $BTC pair

Currently, the value of ETH relative to BTC (ETH/BTC) is at a crucial juncture. Over an extended period, a downward sloping channel has guided ETH towards a highly significant horizontal support level at 0.036 BTC. If this support line were to break, and also considering the alignment with the ascending trendline of the bull market, it could signal a potential end for ETH – until the onset of the next bull market cycle.

A rebound is imminent from the current point, considering the strength of support. However, note that the Stochastic RSI momentum indicator on the chart has recently shifted direction downwards. This trend might persist, but there’s a potential bounce point at the 50.00 level. It’s crucial to seize this last opportunity for a rebound if it presents itself at this level.

$SOL ready for massive bounce against $BTC

In contrast to ETH/BTC, the SOL/BTC chart exhibits a particularly optimistic outlook. What started off appearing as a bull pennant formation, saw a breakdown in early December following a rejection from its upper trendline. Subsequently, the price declined and found stability near the highly significant horizontal support level of 0.00186 BTC.

It seems that we might be looking at the base of a bull flag formation here. If this is true, it means that a downward breakout hasn’t taken place yet. The alignment of the bull flag trendline with the current horizontal price level is providing strong support, suggesting a potential floor for any further price movement.

Based on current trends, it’s likely that $SOL will rebound from this point, aiming for another ascent to the peak of its bullish flag formation. This could potentially lead to a breakthrough to new record highs.

Another point supporting SOL is the presence of the Stochastic RSI at the base of the graph. This technical indicator has reached its lowest point and is now beginning to trend upwards, suggesting a potential significant increase in the momentum of SOL relative to BTC. Keep a close eye on this pair as it develops.

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2024-12-27 15:10