This week, Bitcoin surpassed its previous record, climbing to $111,880. However, the success did not evoke the expected euphoria among traders. Meanwhile, Ethereum continues to seek interest from institutional investors.
Bitcoin Derivatives Analysis
Analysts at 10xResearch and Amberdata assert that the strength of the spot market, rather than speculation, is driving BTC growth. Despite breaking past $111,000, euphoria among traders is absent, and the long/short ratio on top derivatives exchanges exceeds 1. This indicates a bullish sentiment, yet in prior cycles, such as 2017 and 2020, the ratio exceeded 2.
In the past 24 hours, $175 million in shorts and over $47 million in long positions were liquidated. Bearish traders have faced losses for betting against the rising Bitcoin price.
Open derivatives contracts for Bitcoin have reached $78 billion, further indicating strength in the upward trend.
Ethereum Technical and Derivatives Analysis
Ethereum’s data shows a slight increase in open interest of less than 7% over the last 24 hours. During the same time, long and short liquidations were nearly equal, exceeding $60 million.
The long/short ratio on leading derivatives exchanges is under 1, despite a nearly 60% surge in options volume. This provides no clear indication of a bullish or bearish bias among Ethereum’s derivative traders.
Activity in Ethereum lags compared to Bitcoin, indicating a lack of interest from derivatives traders.
Trader Sentiment and Missing Euphoria
The Fear and Greed Index on CoinMarketCap shows that with Bitcoin entering price discovery, the 'Greed' level is not as high as expected, currently sitting at 73. Extreme greed is typically correlated with cycle peaks.
This situation might suggest that traders are waiting for the next correction before a new Bitcoin rally.
Despite the rising cryptocurrency prices, traders are cautious. Bitcoin may reach new heights, but the current market situation necessitates careful monitoring of sentiment changes and trader activity.
