Trading guru Peter Brandt has twitter.com/PeterLBrandt/status/1777164023974506819?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>commented on the ethereum vs. bitcoin, which offers interesting information about market developments.
Brandt's comment comes after his previous criticism of ethereum, denigrating like a “junk currency” and its defenders as “Etheridiots”. However, amid ethereum's recent decline to its lowest position against bitcoin in almost three years, Brandt's stance appears to have transformed.
ethereum sinks against bitcoin: a bear trap?
Analyzing the ethereum to btc chart, Brandt suggested the presence of a “bear trap,” indicating that the current decline in ethereum's value compared to bitcoin could attract sellers into additional short positions.
However, this could lead to an unexpected reversal, turning the apparent breakout of support into a false signal.
<blockquote class="twitter-tweet”>
Bear trap? That's always a possibility when the price hits a new 35-month low. pic.twitter.com/aKQg9k7TcD
—Peter Brandt (@PeterLBrandt) twitter.com/PeterLBrandt/status/1777164023974506819?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>April 8, 2024
Brandt's observation of a possible bear trap highlights the complexities within the cryptocurrency market and the importance of considering multiple factors when analyzing price movements.
While ethereum may be experiencing a period of relative weakness against bitcoin, Brandt's cautious optimism suggests there may be opportunities for a reversal soon.
Bullish signals amid eth/btc decline
Despite ethereum's recent challenges, bullish signals have emerged hinting at a possible turnaround. The options market, in particular, has shown optimism, with a significant portion of the open interest in ethereum options expiring at the end of April being bullish bets on the price.
derived data eth” target=”_blank” rel=”nofollow”>reveals that around $3.3 billion in notional ether options are scheduled to expire, with approximately two-thirds of this sum to be allocated to call options. Furthermore, ethereum's put-call ratio for the April expiration stands at 0.45, indicating a slightly more bullish stance than bitcoin options.
In particular, a call options ratio below one suggests bullish sentiment, and traders prefer calls over puts. Furthermore, the appearance of two new ethereum whales, according to cryptocurrency tracking platform Spot On Chain, identified as 0x666 and 0x435, adds to the bullish sentiment for ethereum.
These entities collectively withdrew a substantial amount of eth from a major exchange, suggesting growing confidence in ethereum's prospects despite its recent downward trend.
While ethereum faces downward pressure against bitcoin, bitcoin's resilience in the market is evident. Cryptoanalyst Ali has x.com/ali_charts/status/1777249436202082387″ target=”_blank” rel=”nofollow”>highlighted that bitcoin appears to be breaking out, with a potential upside target of $85,000 if it can hold above $70,800.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoin It seems to be bursting! Yeah twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>$btc can stay above $70,800, next target will be $85,000! pic.twitter.com/JPLf18KZvt
—Ali (@ali_charts) twitter.com/ali_charts/status/1777249436202082387?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>April 8, 2024
As of this writing, bitcoin is trading above this critical level with a current market price of $71,621, indicating a possible rally towards $85,000 soon.
Featured image from Unsplash, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
