Bitcoin & Ethereum On A Divergence, Back To November Levels That Prompted Breaking Yearly Lows

Bitcoin & Ethereum On A Divergence, Back To November Level That Prompted Yearly Lows

When it comes to the top two cryptocurrencies, Bitcoin is currently in the neutral at $3,921 with 24-hours gains of 0.01 percent while Ethereum is up 0.13 percent in the past 24-hours at $134.81. However, the long-short ratio of both the cryptos on BitMex is in contrast to each other as crypto analyst Rptr45 took to Twitter to share,

“Market positioning is once again a tale of two cities. BTC's funding rate on Bitmex has been negative for 12 of the past 15 days with the Bitfinex L/S ratio at its lowest point since ⅓. This is a stark contrast to ETH where yesterday saw the Bitfinex L/S ratio close at its 4th highest level ever (4.0586) with the exception of a three day period last September (9/21-9/23). MTD the Bitmex funding rate would be the second highest ever (to Sept '18).”

Just recently, crypto trader, Hsaka had also shared the divergence in the market structure of the top two cryptos. He had further added that when this happens, the market tends to follow Ethereum.

While Rptr45 has this to say about ETH performance, “No surprise the ETH performance post a close >4.0 is decidedly negative with an average / median sell-off of -19.9% / -18.2% in the 20 days post. This is really only one data point so clearly not statistically significant but notable nonetheless.”

However, the point worth noting here is the fact that the last time this much significant of a divergence happened between Bitcoin and Ethereum was in September-November. This period was the one that preempted the crash in crypto prices hitting their 2018 lows that saw Bitcoin at $3,200 and Ethereum at around $80.

But the difference between the Sep-Nov period and now is that current Bitcoin seems to be in accumulation. Having said that, the analyst says, Ethereum can see a drop before it moves upward.

“BTC has seemingly been in accumulation mode which is a stark difference vs. Sept-Nov setup and other indicators are more washed out. That said think ETH can lead to a quick leg lower like we saw in early Feb before resuming the upward trajectory.”


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