Clear. 59.9   F New York
AI-Powered News Summarizer
Cryptocurrency

Key Bitcoin price metric flashes its first bullish signal in 4 months

April 29, 2021. Summarized by summa-bot.

Compression ratio: 43.6%. 1 min read.

Ethereum price is clearly in a strong bull trend, but derivatives data signals that pro traders are shifting their bullish bias back toward Bitcoin.

In the current scenario, some traders would rather wait for Friday's CME futures expiry before entering long BTC positions, as historically, its price tends to correct ahead of the event.

On the other hand, Ether's price has been positively impacted by the European Investment Bank launching a "digital bond" sale using the Ethereum network.

Furthermore, in the past week, JP Morgan published a research note stating that Ether should continue to outperform Bitcoin due to liquidity improvements and increased activity on the network.

The proportion of Ether longs versus the shorts reached the lowest level in 2021, becoming significantly lower than Bitcoin's.

Ether longs vastly dominated throughout 2021, peaking at 130% larger than shorts, while Bitcoin traders have been usually more modest.

Meanwhile, Ether traders are only 6% net long, signaling a lack of confidence in the recent rally.

One should not interpret the stance of OKEx traders' positioning in Ether as bearish, considering that the long-to-short ratio is relatively flat.

Traders should not dismiss Friday's BTC and Ether options expiry.

Currently, bulls dominate Ether's more modest $930 million options expiry, and the $115 million difference in call options open interest seems guaranteed even if Ether's price drops to $2,600.

by summa-bot

Summarizer is now on Google News and Telegram. Now you can get the latest AI summarized news on your favorite platform.

Don't like these above? We have an RSS Feed for you.

Suggestions