Bitcoin Price Poses For A 4.3% Increase In Days, As Amount Of Bitcoin Futures And Options Drops

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Bitcoin Price Poses For A 4.3% Increase In Days, As Amount Of Bitcoin Futures And Options Drops

Bitcoin and Ethereum Futures and Options are good divergence indicators to pay attention to in the market. Bitcoin and Ethereum are the two largest cryptocurrencies by market capitalization. Notably, they have been locked in a close rivalry for many years. In recent weeks, however, there’s now a divergence in the performance of the two coins.

Bitcoin is currently on a steady rise since the beginning of October, although Ethereum is lagging behind. This divergence is likely due to a number of factors, the Bitcoin ETF News and the speculation of whales dumping Ethereum. Let’s take a look at this divergence and what it means going forward. 

Bitcoin And Ethereum Futures and Options Chart

Furthermore, The amount of Bitcoin futures and options dropped ever since $100M+ in shorts were liquidated. This was after Monday’s premature iShares ETF announcement. This suggests that traders are becoming less bearish on Bitcoin and more bullish on Ethereum.

Ethereum futures and options, on the other hand, are going the other direction. Open interest in Ethereum futures and options is seeing an increase by $93M in the past day. While open interest in Bitcoin futures and options is seeing a decrease by $270M.

Of course, this suggests that traders are becoming more bullish on Ethereum and more bearish on Bitcoin.

A Similar Scenario in September On Bitcoin Futures And Options

However, A similar scenario like this played out in late September, when Bitcoin open interest dropped as Ethereum rose. In the following days, the price of Bitcoin jumped by 4.5%.

So, this new trend tends to suggest a potential price increase for Bitcoin. The current performance divergence in Bitcoin and Ethereum Futures and Options could be a bullish sign for Bitcoin.

Technical Analysis, Aside The Bitcoin And Ethereum Futures And Options

The technical outlook for Bitcoin is bullish. The price of Bitcoin is above its 50-day moving average, and its RSI is at the neutral level. Note, indicators are showing that “Strong Buy” for Bitcoin. 

Source: CoinmarketCap

At the time of writing, the Bitcoin price today is at $28,267.74 with a 24 hour trading volume of $13,126,943,000. The current live market cap of Bitcoin is still cruising over $550B, now at $551,725,213,729 exactly.

The technical outlook for Ethereum is also bullish. The price of Ethereum is above its 50-day moving averages, and its RSI is at the neutral level.

Source: CoinmarketCap

Currently, the price of Ethereum today is at $1,581.32 with a 24 hour trading volume of $5,233,724,821. The current market cap of Ethereum is currently at $190,172,872,819. 

Concluding Thoughts And Watch Levels For Investors

The current Bitcoin and Ethereum Futures and Options divergence could be a bullish sign for Bitcoin. Notably, this is because it is similar to a scenario that played out in late September, whereby when Bitcoin open interest dropped as Ethereum rose. In the following days, the price of Bitcoin jumped by a notable 4.5%.

Furthermore, investors should watch for a break below Bitcoin’s support levels of $27,500, $27,000, and $26,500. Notably, a break below these levels would signal a trend reversal. Which will ultimately lead to further lower prices for Bitcoin. 

Alternatively, investors should also watch for a break above Bitcoin’s resistance levels of $28,500, $29,000, and $30,000. Of course, a possible break above these levels would signal a continuation of the uptrend. This will ultimately lead to further higher price levels for Bitcoin. 

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