Bitcoin vs. Ethereum: Which cryptocurrency could explode in May?

Bitcoin soars: Is a massive breakout underway?

Bitcoin (BTC) is currently trading in a price zone between $80,700 and $81,300, marking an impressive surge. Analyzing the impact of this move shows that buyers have regained control following last month’s retracement. The MACD indicator on the weekly timeframe recently validated a bullish crossover, a historical signal that often precedes a prolonged bull run.

From a technical analysis perspective, BTC is facing a major psychological and structural resistance around $83,400, which corresponds to the 200 day moving average (SMA). If the bulls manage to push through this level, the bullish scenario anticipates an explosive breakout with a clear target set at $95,000 to $97,000. Between these two levels, BTC will have to tackle the trendline around $86,000. 

Conversely, a bearish scenario cannot be ruled out if buying volume runs out of steam. A rejection below $83,000 could trigger a correction toward the key support of $77,000. The current low on chain activity suggests that this rally is primarily driven by whales and ETFs, leaving the market vulnerable to sudden profit taking.

Ethereum lagging behind: Is the key support in danger?

Meanwhile, Ethereum (ETH) is showing much more hesitant momentum, currently trading in a range of $2,360 to $2,399. Unlike Bitcoin, Ether remains stuck below its major trendline. This underperformance highlights that this area acts as a strong resistance. Furthermore, ETH is sitting at its weekly POC at $2,352. ETH needs to hold above this level for the weekly close, otherwise it risks underperforming BTC over the coming weeks.

Immediate resistance stands at $2,472. Breaking through this level, coupled with a rising RSI, would validate a bullish scenario with technical targets at $2,550 and then $2,646. This breakout would be essential to reignite a sustainable upward momentum for the second largest cryptocurrency.

However, selling pressure remains strong. In a bearish scenario, failing to break above $2,375 would send ETH back to the bottom of its channel. The critical support to watch is located at $2,210. A breakdown below this level could trigger a fresh wave of liquidations and widen the divergence with Bitcoin.

Is it the right time to accumulate before the next surge?

The current divergence between Bitcoin and Ethereum offers contrasting trading opportunities. BTC seems ready to absorb market liquidity to target new highs, while ETH offers an attractive risk to reward ratio if it manages to break its resistance. The coming days will be decisive in confirming the underlying trend.

On the other hand, SOL appears to be in a better position, much like LINK. For now, the advantage goes to Bitcoin. But the appearance of strongly bullish order blocks below the ETH price indicates that a major breakout is brewing. Capital rotation will be something to watch closely over the next few days.

With Bitcoin technical indicators flashing green and Ethereum fighting for survival at a critical level, volatility is likely to intensify. Investors should keep a close eye on trading volumes and institutional flows to anticipate the next major move.

How high can the price of Bitcoin go if it breaks through $83,000, and will Ethereum finally manage to catch up? If BTC reaches $86,000, ETH will almost certainly hit $2,600. This would give ETH the upper hand in terms of potential returns.

Sources:

• AMBCrypto
• Checkonchain
• Tradingview

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