Bitcoin (BTC) has broken past the key descending triangle as we discussed. This is nothing extraordinary as it has happened before. However, it is important to highlight such moves because the purpose of our analyses at Crypto Daily is to help retail traders understand how they are tricked into making bad trades by the big players in this market and how to combat such antics. The price has failed to garner any momentum to break higher and we can see that it has been struggling to flip bullish but every time it pumps, it retraces back leaving a long wick to the upside. Meanwhile, we have seen that BTC/USD keeps declining to the support at $9,029 and the more often it does that, the higher the probability that it is eventually going to break below it.
Taking a look at the ETH/BTC chart, we can see that it has declined below a key support level that is the 38.2% fib extension level. The pair struggled to break above it for the past two days but it failed. There is thus a strong probability of Ethereum (ETH) declining further against Bitcoin (BTC). From a fundamental analysis standpoint, we have also seen that Bitcoin (BTC) pumped harder than Ethereum (ETH) recently so it makes sense why traders would be more interested in Bitcoin (BTC) compared to other cryptocurrencies. The recent 43% pump in Bitcoin (BTC) also pushed most coins off their key support levels which is yet another reason why traders that are bullish are more interested in Bitcoin (BTC) instead of Ethereum (ETH) or any other coins at this point.
We have seen some moves in coins like Stellar (XLM), Cosmos (XLM) and Decred (DCR) but for the most part, cryptocurrencies have not made any significant moves even as Bitcoin (BTC) traded sideways. On the daily chart for ETH/USD, we can see that the price keeps on falling back to the $180 zone which is around the 38.2% fib extension level. If we see a break below this level, then I would expect Ethereum (ETH) to decline towards the bottom of the descending channel. It may find support along the way but that is where I would see the price falling to before any potential trend reversal. The EUR/USD forex pair as well as the S&P 500 (SPX) could soon flip bearish which is yet another reason not to be bullish on the cryptocurrency market at this point.