/BTC & /ETH Charts

When you look at the charts of your favorite cryptocurrencies, they're most often compared to the Dollar, or to a Dollar-indexed stablecoin like USDT or USDC.

We use the $ because it's the most influential currency internationally, but comparing the cryptocurrencies you plan to invest in with other cryptos can be extremely relevant in confirming whether your hunches are right.

The simplest and most useful example is the ETH/BTC pair chart, which simply reflects the price of 1 Ethereum divided by the price of 1 Bitcoin. You'll get a ratio, in this case 0.068, because 1 Ethereum is worth $1325 and 1 Bitcoin is worth $19455 (as at 03/10/22).

This ratio will therefore vary according to the price of Ethereum and Bitcoin. When the ETH/BTC ratio rises, Ethereum gains in value against Bitcoin; when it falls, Ethereum loses value against Bitcoin.

So if you can anticipate when the ETH/BTC ratio is rising, you can invest your Bitcoin in Ethereum to maximize its performance. In this way, you can also accumulate Bitcoin by converting your Ethereum back into Bitcoin when the ratio is at its highest, at least higher than when you first converted, otherwise, you lose Bitcoin.

Technical analysis using chartism and indicators can be applied to these charts, and many crypto pairs against Bitcoin and Ethereum are available directly on Centralized Exchanges like Binance or Kucoin. For example, to buy the CHZ/ETH chart, you'll need to buy Chiliz with Ethereum.

We'll now take the VET cryptocurrency and these 3 charts as an example, against the Dollar, Bitcoin, and Ethereum to understand what important information we can glean from these charts, and we'll analyze how buy signals were given as we went along on each of these charts during the 2021 bull run.

The first chart we'd think to analyze is the one against the USDT, where we can observe a large accumulation over several years, here one candle represents one week. In early 2021, VET managed to make new highs, before coming in for a small bounce off the old highs in February 2021, the buy signal is given at this point. The price did rise in the weeks that followed, and this cryptocurrency jumped by almost 1000% over the following months, but if you hadn't got in by February 2021 and were wondering whether it was too late and too risky to get in after a string of bullish candles, you could consult the VET/BTC chart! Here it is:

This chart tells us whether the VeChain token is a potentially more attractive investment than Bitcoin over certain periods. If the chart looks bullish, you might decide to invest your BTC in VET.

In this example, we see a buy signal as the price closes above an important horizontal resistance level. This signal heralds an outperformance of VET against Bitcoin, and it doesn't arrive until March 2021, by which time the price of VET against the dollar has already jumped by over 100%! This is therefore a relevant signal confirming that investing your Dollars or Bitcoin in VET may be a good idea, and it will be even more encouraging if the Bitcoin chart against the Dollar is itself bullish.

Some fifty days after this signal appeared, the price found a high point before falling violently, but still recorded a breathtaking performance of +300%! This means that if you had invested a full Bitcoin in VET in March 2021, you would have gained 3 Bitcoin in the space of 50 days!

The last chart that is very useful to analyze before making a buying decision is that of your cryptocurrency against Ethereum, which is the second largest cryptocurrency, and which is generally more volatile than Bitcoin because its capitalization is much smaller.

On the VET/ETH example, the signals were also extremely clear: in February 2021, when the price began to explode against the Dollar, VET was on long-term support against Ethereum. A zone on which the price has bounced many times is likely to make it bounce again in the future, and here you could also expect a breakout from the top of the descending wedge in which the price was compressing.

Once again, the chart didn't lie, and VeChain strongly outperformed Ethereum, rising by over 500% in the 2 months that followed. In other words, if you had invested 1 Ethereum in VeChain in February 2021, you would have had the equivalent of 6 Ethereum just 70 days after your conversion. What's more, we noticed that an index could give us a very precise selling target, thanks to bullish resistance linking the former high points.

So we understand that these charts have several interests: they can confirm buy signals for a crypto against the Dollar, and even show you whether these will be a better investment than Bitcoin or Ethereum. If the crypto you're hesitating to buy looks like it could become bullish against the Dollar but not against Bitcoin and Ethereum, this indicates that you're better off holding on to your BTC or ETH if they have bullish charts, otherwise, withdrawing your money from the market to switch back into stablecoin may be the best thing to do depending on your strategy.

Last but not least, you can compare all cryptos with each other on TradingView. Simply enter your first code in the search bar, then add a "/" and search for the reference crypto for comparison. For example, if you want to compare Chiliz and Litecoin, you'll need to enter CHZUSDT/LTCUSDT in the search bar.

These pairs won't necessarily be directly tradable on exchange platforms, but they can give you an indication if you're planning to sell one crypto to buy another. So you'll have a number of charts to analyze to perfect your predictions: if you own Chiliz and are hesitant to convert it to Litecoin, you can consult the CHZ/USDT, CHZ/BTC, and CHZ/ETH charts to determine whether your crypto is likely to enter an uptrend, then analyze the LTC/USDT, LTC/BTC and LTC/ETH charts to see if they look prettier than your other crypto. And finally, the CHZ/LTC chart, if it looks like it's about to go bearish, this will encourage you to convert your Chiliz to Litecoin.