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Over several years of actively trading Bitcoin, I have come to notice one important leading indicator that works well in helping me predict massive moves on the Bitcoin market. That leading indicator is the Ethereum price chart.
This positive correlation between the two cryptocurrency makes Ethereum a leading indicator because, in the past, every time Ethereum made a massive move to the upside or downside, Bitcoin as always followed closely after a couple of days.
And in this article, I will be talking about this correlation and how it can help us better understand and predict the next massive move in the Bitcoin market.
I will also be talking about what Ethereum is currently doing as well as the important signals Ethereum is currently flashing.
Is Ethereum Showing A Buy Or Sell For Bitcoin?
The Ethereum price is currently in a critical region that as served as both support and resistance for the Ethereum price in the past.
This region is so important in predicting the next Bitcoin move because I believe the Ethereum price will react very aggressively either to the upside or downside from this price region.
A break above this resistance will see a massive pump in the Ethereum price, opening the way for Bitcoin to also resume its bullish trend and for massive moves on Bitcoin to the $15,000 price target and beyond.
However, if that resistance holds in the Ethereum price chart, then we can expect a massive pullback in the Ethereum price in the coming days.
And since I expect this move on Ethereum to occur a few days earlier than that of Bitcoin, this bearish move can easily become my final confirmation of a likely Bitcoin price dump to the $10,500 region or lower in the coming days.
What Is The Ethereum Price Doing Right Now?
At the time of writing this Bitcoin analysis, the Ethereum price is still trading sideways. it as not made any higher highs and it as not broken the previous lows.
However, we are seeing a lot of bullish momentum come into the Ethereum market and there is a high likelihood that the price might just continue higher towards that major resistance I talked about earlier.
You can be rest assured that I will keep you up to date here on my daily Bitcoin analysis as this price action develops.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.
