Critical Bitcoin indicator points to bullish

Bitcoin (BTC) struggled to stay above the $ 53,000 support for three days. Meanwhile, Ether (ETH) rose to an all-time high at $ 2,800. In the current scenario, some traders decided to wait for the Friday’s CME futures to expire before entering long BTC positions, considering the price was trending to eventually correct.

Ethereum and Bitcoin prices on the Coinbase exchange. Source: TradingView

On the other hand, the European Investment Bank (EIB), which initiated the sale of “digital bonds” through the Ethereum network, positively affected the price of Ether. With the agreement made by EIB, Goldman Sachs, Santander and Societe Generale, a two-year 100 million euro (approximately $ 120.8 million) digital bond will be issued.

Also last week, JP Morgan published a post stating that Ether should continue to outperform Bitcoin due to liquidity improvements and increased activity on the network.

Analyst Joshua Younger commented on the development:

“Bitcoin is more of a crypto commodity than a currency. It competes with gold as a custodian. Whereas Ether is the backbone of the crypto economy. So it functions more as a medium of exchange. The more it has this potential, the more its effectiveness becomes in value.”

At OKEx, the net long-short position ratio of users reveals surprising data. Ether’s rate reached its lowest in 2021 and is significantly lower than Bitcoin’s.

Long-to-short ratio of OKEx futures. Source: OKEx

Ethereum investors took long positions largely throughout 2021 and were 130 percent more favored than short ones. Bitcoin traders, on the other hand, are generally more modest. However, as of April 29, the reversal of the market trend allowed BTC’s long positions to be 45 percent more in short.

April’s monthly trend indicates that Bitcoin investors are becoming more optimistic.

Investors were staring at the end of Friday’s BTC and Ether options. While the $ 3.9 billion bitcoin futures will end, if the price drops below $ 50,000, danger bells could ring for the bulls.

Currently, the bulls have a say in the end of Ether’s $ 930 million options. Even if the price of Ether drops to $ 2,600, the $ 115 million open position difference in call options powers the market.

However, both cryptocurrencies may experience price fluctuations following the expiration of CME futures and options on Friday.

The opinions and comments expressed here are only to the author belongs. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.

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