Ethereum Poised to Outperform Bitcoin Again, Predicts Renowned Trader Who Accurately Called May 2021 Crypto Market Crash

A trader renowned for a history of precise predictions suggests that Ethereum (ETH) could potentially outshine Bitcoin (BTC) as the long-term trend unfolds.

"Pseudonymous analyst and trader, Dave the Wave, shares insights with his 140,000 social media followers regarding Ethereum versus Bitcoin (ETH/BTC). While it may seem like ETH/BTC is displaying a pattern of lower highs and lower lows in the short term, taking a broader perspective reveals a different narrative.

Dave the Wave explains:

'ETH/BTC:

Careful of (shorter-term) hindsight bias – it’s a series of lower highs until it’s not.

The longer timeframe trumps the shorter…. and helps to predict future price action, which is what speculation is all about, as opposed to simply describing recent past price action…

Those captured by hindsight bias tend to be armchair critics, not actual speculators… Indeed, they may have the purist’s distaste for such…. having been burnt at the top.'"

Zooming out on a multi-year timeframe, Dave the Wave shows how ETH/BTC may in fact be near the end of a large wedge pattern, suggesting a breakout to the upside around the beginning of next year or so.

When it comes to Bitcoin, the trader employs a unique approach using logarithmic growth curves (LGCs). These curves aim to map out Bitcoin's long-term market cycle highs and lows while minimizing the impact of volatility and market noise.

According to his analysis, Bitcoin is poised to surpass traditional assets such as stock indices for at least another ten years, as indicated by the LGC:

'The LGC chart suggests another decade before BTC achieves full capitalization and becomes on par with more conventional investments, maintaining its ability to keep up with inflation. Until then, it remains the primary vehicle for wealth creation.'

Oct 01, 2023