Bitcoin Heads For Monthly Gain, Ethereum Outperforms By Investing.com

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By Samuel Indyk

Investing.com’s price was flat above $ 47,000 on Tuesday and was heading for its second consecutive monthly gain after the previous two months of losses.

For the month, Bitcoin is trading up around 15% after rising over 18% in July.

outperformed Tuesday, having increased by around 7.5% in the past 24 hours. Rising prices can be a rally of relief after a blockchain bug appears to have been overcome.

The bug affected older versions of the Ethereum Geth network client, resulting in the separation of nodes from the main network. The bug had increased the risk of Ethereum token counterfeiting.

Ethereum co-founder Joseph Lubin said there had been an attempt to exploit the bug but it was in the process of being resolved.

The price had dropped to as low as $ 3,060 when the bug was first identified, but it has risen to over $ 3,400 today.

For the month, Ethereum is also outperforming Bitcoin, having increased by over 35% throughout August.

However, the rally is insignificant compared to some of its next rivals in decentralized finance (DeFi) applications.

and were the top two performing cryptocurrencies in August, increasing by 174% and 114% respectively.

Both benefit from expectations that their own DeFi projects will provide more competition to Ethereum.

The recent boom in non-fungible tokens (NFTs) is also a boon for both cryptocurrencies.

During the month of August, the developers of Cardano announced that the Alonzo Purple upgrade will take place on September 12. The upgrade is expected to bring smart contracts into the network, which paves the way for decentralized applications.

Action on future Bitcoin prices

Bitcoin has traded in a relatively narrow range between $ 46,500 and $ 50,500 over the past two weeks and has failed to make a clean break on either side of the range since August 19.

The world’s largest cryptocurrency remains above its 200-day moving average, which currently sits around $ 46,070.

Some analysts have pointed out that Bitcoin failed to firmly break through $ 50,000 over the weekend, a sign that momentum is slowing and that a correction may be ahead.

There have been many signs lately that the cryptocurrency is preparing for a correction, with the techniques all seeming to point in the same direction, said Craig Erlam, senior market analyst at OANDA.

Rallies are fading faster, momentum indicators are showing divergence, a new miss high being a few.

None of this means his best days are behind him and we’ve seen the top, but maybe a decent correction could follow.

A move below $ 46,000 could see this accelerate, with the key area going from $ 40,000 to $ 41,000.

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