Ethereum’s Dive To 3-Year Low Against Bitcoin, Is This A Bear Trap? Trading Guru Weighs In
08 April 2024 - 8:00PM
NEWSBTC
Trading Guru Peter Brandt has recently commented on the Ethereum
vs. Bitcoin chart, offering intriguing insights into market
developments. Brandt’s remark comes after his prior critiques of
Ethereum, denigrating it as a “junk coin” and its proponents
as “Etheridiots.” However, amidst Ethereum’s recent descent to its
lowest position against Bitcoin in nearly three years, Brandt’s
stance seems to have transformed. Related Reading: Sleeping Giant
Awakens! Ethereum Whale With Over 12,000 ETH Creates Noise Ethereum
Plunges Against Bitcoin: A Bear Trap? Upon analyzing the
Ethereum-to-BTC chart, Brandt suggested the presence of a “bear
trap,” indicating that the ongoing decline in Ethereum’s value
compared to Bitcoin might entice sellers into additional short
positions. However, this could lead to an unexpected reversal,
turning the apparent breakdown in support into a false signal. Bear
trap? That is always a possibility when price hits a new 35-month
low. pic.twitter.com/aKQg9k7TcD — Peter Brandt (@PeterLBrandt)
April 8, 2024 Brandt’s observation of a potential 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 that
there may be opportunities for a reversal shortly. Bullish Signals
Amid ETH/BTC Downturn Despite Ethereum’s recent challenges, bullish
signals have emerged, hinting at a potential turnaround. The
options market, in particular, has shown optimism, with a
significant portion of Ethereum options open interest expiring by
the end of April being bullish bets on price. Deribit data reveals
that about $3.3 billion worth of notional ether options are
scheduled to expire, with approximately two-thirds of this sum
allocated to calls. Moreover, the Ethereum put-call ratio for the
April expiration stands at 0.45, signaling a slightly more bullish
stance than Bitcoin options. Notably, a put-call options ratio
below one suggests bullish sentiment, with traders favoring call
options over put options. Moreover, the emergence of two new
Ethereum whales, according to the crypto tracking platform Spot On
Chain, identified as 0x666 and 0x435, adds to Ethereum’s bullish
sentiment. These entities collectively withdrew a substantial
amount of ETH from a major exchange, suggesting growing confidence
in Ethereum’s prospects despite its recent downtrend. Related
Reading: FOMO Gives Way To Fear: Bitcoin-Ethereum Ratio Signals
Shift In Crypto Sentiment While Ethereum faces downward pressure
against Bitcoin, Bitcoin’s resilience in the market is evident.
Crypto analyst Ali has highlighted that Bitcoin appears to be
breaking out, with a potential upside target of $85,000 if it can
hold above $70,800. #Bitcoin appears to be breaking out! If $BTC
can hold above $70,800, the next target becomes $85,000!
pic.twitter.com/JPLf18KZvt — Ali (@ali_charts) April 8, 2024 When
writing, Bitcoin trades above this critical level with a current
market price of $71,621, indicating a possible climb towards
$85,000 shortly. Featured image from Unsplash, Chart from
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