Recent ratios between Bitcoin (BTC), and Ethereum (ETH) suggest a possible decline in the risk appetite of crypto investors. This ratio is at its highest since April 20, indicating that Bitcoin has a greater demand than Ethereum.
QCP Capital, a crypto-asset trading firm, has speculated on this development. They believe that the change in the ratio is an early indicator of a shift from “fear of missing out” Fear of the unknown (FOMO).
Bitcoin And Ethereum Performance
The second quarter 2024 began with relatively quiet activity. Bitcoin’s value has fallen below the $70,000 level and is still relatively unchanged. range-bound In the last few days, I’ve been alternating between $65,000-$68,000. On Monday, however, I briefly touched the $70,000 threshold.
According QCP has concluded that the amount of capital flowing into the Bitcoin Exchange Traded Funds (ETFs) spot market is not significant enough to produce price movement in any direction.
The company observed that the funding rate has stabilized and the curve front has decreased from its previous peak of 50 percent to currently less than 20 percent.
The front of the spout is a bit different than the rear. forward curve Although the front end has declined, it remains very high. It has sparked interest in rolling forward spot basis positions to further dates, perhaps due to a continued demand for Bitcoin calls with a long date of 2025.
Ethereum has, however, had relatively low performance. QCP notes also that after breaking under 0.05, the ETHBTC is now testing a crucial support level. There has been a sustained sale of Ethereum call options, which resulted in lowered volatility and downward pressure.
QCP finds, in the end, that these events are causing people to speculate about if this is an early indication of FOMO Ethereum is turning into a source of fear.
Ethereum’s performance, and the impact it has on other altcoins is important to monitor.
BTC Will Experience A Double-Top
Crypto Con, a renowned crypto analyst, has asked an interesting question: Is BTC poised to reach a second top like the ones seen in 2013 and 2020?
Crypto Con highlights Fisher Transform has seen significant surges in its indicator when it sees more apparent double tops.
Contrastingly, the double-top 2017 formation displayed a subtler rise at first in June. All final cycle tops have a bearish divergence where price reaches higher levels and the indicator declines, as shown in the below chart.
Bitcoin’s current levels are very similar to what was seen last year, as can be seen from the lower portion of the graph. Crypto Con says that if Fisher Transform can remain at these levels, without spikes to the lines seen in 2013, and 2021 it may indicate an increased likelihood of the a single top formationAnalysts believe that December 2024 will mark the end of the cycle.
Chart from TradingView.com, image from Shutterstock
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