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Bitcoin vs Altcoins and Memecoins: What Happened?

12 May, 2021 Martin Petkov
Bitcoin vs Altcoins and Memecoins

Hello and welcome, everyone. It's Martin here with CryptoGains. Today, we're discussing Bitcoin and why the number of entities with a balance of over 1000 Bitcoin — these are what are considered Bitcoin whales — is decreasing, and it's actually back to levels seen in 2020. This is based on data from Glassnode, and here are a couple of reasons.

So, first of all, the dropping Bitcoin prices, or rather the slower price appreciation compared to some of the altcoins, is driving investor attention away from Bitcoin into other cryptocurrencies. In addition to that, we can see that in terms of total market capitalisation, the dominance of Bitcoin is gradually decreasing, whereas Ethereum, Binance Coin, Cardano, Bitcoin Cash, Ripple, Dogecoin, in particular, are slowly climbing up, attracting more and more institutional interest. And finally, of course, there is the rise of memes — such as Dogecoin, such as Shiba, more recently — which, of course, is also driving some of the money away from Bitcoin and into these alternative assets.

In addition to that, what we're observing is that now, Uniswap has flipped Bitcoin on daily revenue. And actually, the stats are even more impressive because this is based on Uniswap Version 2. And if we add Version 3, then the advantage over Bitcoin in terms of 7-day average fees will be even higher. Of course, Ethereum is the leading network in terms of transactions, but the Uniswap network has now overtaken Bitcoin. So, despite this, however, we are observing some recovery in Bitcoin. So we can take a look at the chart and see how we can trade that.

On the one-hour chart, we can see that the MACD is in healthy bearish territory. The Relative Strength Index is also above 50. So, over $57,000, buying Bitcoin, with targets at $58,000 and $59,250. Conversely, below $57,000, a good opportunity to sell Bitcoin, with targets at $56,400 and $55,300.

And, now, let's take a look at Ethereum, which is reaching new all-time highs once again. The pivot point for Ethereum is $4300. And above that level, I recommend buying Ethereum, with targets at $4360, which is near the all-time high, then, beyond that, of course, $4400 and then $4500. We can see a fairly substantial gap on the downside, however. So if we were to see a break below $4300, this is likely to take us all the way down to $4200, which is going to be a substantial drop in Ethereum.

Now let's move to one of the best performers of the last 24 hours, Bitcoin Cash. Bitcoin Cash spiked to a new all-time high, and it's currently retracing some of the gains, but the critical level is $1520. Above that level, opportunities to buy Bitcoin Cash, with targets at $1600 and $1641. Conversely, if we break below $1520, we could see declines on the short side, with good opportunities to sell Bitcoin, with targets at $1490 and $1450.

And, now, let's take a look at Uniswap, which we discussed in an article a few moments ago. Uniswap is also retesting all-time high territories. And over $43, we have a good opportunity to buy Uniswap, with targets at $44 and $44.90. Conversely, below $43, we could see that there was quite a bit of downside, so you can sell Uniswap below $43, with the next support level found at $41.85.

And, finally, let's take a look at Zcash. Zcash is another exceptional performer from the last 24 hours, reaching new all-time highs and now retracing some of these gains, but over $335, a good opportunity to buy Zcash. And we can see that the targets are based on Fibonacci extension levels. So $346.50 is the first level, and then $355.15 is the next level on the long side. Conversely, if you decide to sell Zcash below $335, we could use reasonable targets at $329.445 and $316.15.

Thanks for joining me today. Keep learning with the video education section and the CryptoGains market insights subsection. And, of course, remember to join the Crypto Signals Made Easy channel for lots of insightful articles and trading ideas. Thanks for joining me today. Trade wisely, and I'll see you soon.

Bye-bye.

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