A trader known for his string of accurate statements says it appears Ethereum (ETH) is on track to outperform Bitcoin (BTC) as the longer-term trend continues.
Pseudonymous analyst and trader Dave the Wave tells his 140,000 followers on social media platform
“ETH/BTC:
Beware of hindsight bias (shorter term): it’s a series of lower highs until it isn’t.
The longer the time frame is more important than the shorter…. and helps predict future price action, which is what speculation is all about, as opposed to simply describing recent past price action…
Those caught by hindsight bias tend to be armchair critics, not true speculators. In fact, they may have the purist’s distaste for it. burnt at the top.”
Dave the Wave zooms out on a multi-year time frame and shows how ETH/BTC could actually be at the end of a major wedge pattern, indicating a breakout to the upside around the start of next year or so.
When it comes to Bitcoin, the trader uses his own version of logarithmic growth curves (LGCs) that attempt to chart the highs and lows of BTC’s long-term market cycle, while filtering out the volatility and noise.
He say that Bitcoin is on track to outperform traditional assets such as stock indices for at least another decade based on the LGC.
“Another decade suggested by the LGC chart before BTC is fully capitalized and on par with more traditional investments… keeping pace with inflation.
Until then, the most important instrument for creating wealth.”
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