The all-important Bitcoin price metric is showing its first bullish signal in 4 months


Bitcoin (BTC) struggled to maintain support above $ 53,000 for the past three days, while Ether (ETH) rose to a new all-time high of $ 2,800. In the current scenario, some traders would prefer to wait for the CME futures to expire on Friday before taking long positions in BTC, as the price tends to be corrected before the event in the past.

Ether and Bitcoin prices at Coinbase, USD. Source: TradingView

On the other hand, the price of Ether was positively impacted when the European Investment Bank launched a “digital bond” sale through the Ethereum network. The EIB is issuing a two-year digital bond worth € 100 million ($ 120.8 million) led by Goldman Sachs, Santander and Societe Generale.

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Additionally, JP Morgan released a research report last week stating that Ether should continue to outperform Bitcoin due to liquidity improvements and increased activity on the network.

According to pension analyst Joshua Younger:

“Bitcoin is more of a crypto commodity than a currency, and competes with gold as a store of value, while ether is the backbone of the crypto-native economy and therefore acts more as a medium of exchange. To the extent that it has some of that potential activity is more valuable . “

When analyzing the relationship between the net long-short ratio of users at OKEx, surprising data emerges. The indicator is calculated using the consolidated positions of clients, including perpetual contracts and futures contracts. The ratio of ether longs to shorts reached its lowest level in 2021, well below that of Bitcoin.

OKEx futures long-short ratio. Source: OKEx

Ether longs dominated strongly over the course of 2021, hitting a 130% high versus shorts, while Bitcoin traders were typically more modest. However, the market trend reversal from April 29th is due to the fact that the rate for BTC longs is 45% higher than for shorts.

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

One should not interpret the stance of OKEx traders’ position in Ether as bearish, considering that the long-short ratio is relatively flat. However, the monthly trend in April leaves no doubt that Bitcoin traders are becoming more optimistic.

Traders shouldn’t turn down the BTC and Ether options expiration on Friday. The $ 3.9 billion bitcoin leak poses a threat to bulls if the price happens to drop below $ 50,000, considering the put options from neutral to bearish have an advantage of 700 million US dollars would have.

Currently, bulls are dominating the more modest $ 930 million expiry in Ether, and the $ 115 million difference in open positions on call options appears to be guaranteed even if the price of Ether falls to $ 2,600.

However, both cryptocurrencies may be volatile after the option options expire on Friday at 8:00 a.m. UTC and the following CME futures and options at 15:00 UTC.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.