The cryptocurrency market kicked off 2023 on a promising foot, as assets like Bitcoin and other leading altcoins in the market recorded significant price gains.
However, the bullish momentum built in the past few weeks has yet to reflect a full recovery.
Now, a key player is giving an insight into what players should expect from the market as he puts Ethereum and Bitcoin into perspective.
According to Chris Burniske, the former head of crypto analysts at ARK Invest, Ethereum is staging what could be one of the most memorable moves recorded in the market this year. The analyst asserted that Ethereum is ready to break out against the apex cryptocurrency Bitcoin after a consolidation that lasted for almost two years.
His sentiments come at a time when the market is wary of a possible increase in interest rates from the Feds as inflation rises in the United States. As previously reported, one analyst has recently predicted that assets like Bitcoin could be affected if the Feds take action to raise interest rates.
Bitcoin (BTC) remains capped below $24,000, while Ethereum (ETH) manages to clear weekly losses
Meanwhile, Bitcoin and Ethereum have been trading downwards for the past week. Bitcoin kicked off the new year at $16,547 and surged by nearly 40% in the month of January. The asset went over $23,000. February’s price performance was much lower for Bitcoin and mostly remained below $24,000. At press time, Bitcoin is trading at $22,327.
BTCUSD Chart by TradingView
Data from cryptocurrency intelligence platform Santiment previews that bottoms are more likely to form as more traders are leaving their positions at a loss.
“Bitcoin & Ethereum are both having more traders sell at a loss than at a profit this week, the first such week so far in 2023. Historically, once the crowd is exiting their positions more frequently at a loss, bottoms are more likely to form.” Santiment noted in a tweet.
On the other hand, Ethereum (ETH) is trading at $1,560. The altcoin has managed to clear weekly losses by making mild corrections upwards. Santiment also revealed that non-exchange addresses have toppled levels last seen seven years ago.
“Ethereum has been fairly under the radar in 2023. However, you probably didn’t know the 10 largest non-exchange addresses just surpassed holding 25M ETH for the first time since 2016.”