šØš„WARNING FOR ALTCOIN BULLS: ETH-BTC RATIO FLASHES DEATH CROSS! šØš„
š ALTCOIN BULLS BEWARE! š
The ether-bitcoin ratio is signaling TROUBLE ahead. As the ratio teeters on the brink of a DEATH CROSSāa bearish technical patternāthe options market reflects growing investor caution.
A DEATH CROSS occurs when a short-term moving average dips below a long-term moving average, indicating a potential long-term DOWNTURN. Currently, the ratio's 50-week SMA is poised to cross below the 200-week SMA, suggesting a shift towards RISK AVERSION or prolonged underperformance of altcoins like ether (ETH) compared to bitcoin (BTC).
Historically, altcoin performance has been tied to the ETH/BTC ratio, with rising ratios signaling increased RISK APPETITE and vice versa. However, this year has seen the ratio drop by nearly 10% to 0.048, indicating a potential DOWNTURN for altcoins.
According to Singapore-based QCP Capital, persistent selling of ETH calls has dampened VOLATILITY and added downside pressure to ether's price, hinting at a shift from bullish FOMO to FEAR.
Meanwhile, options pricing on Deribit suggests a BEARISH OUTLOOK for ether in the short term. At present, ether puts are trading at premiums to calls across various maturities, indicating a preference for PROTECTION against price declines.
In contrast, bitcoin options show a BIAS towards calls, except for seven-day options, further underscoring the CAUTIOUS sentiment prevailing in the market.
šØ ALT COIN BULLS SHOULD HEED THESE WARNINGS AND TREAD CAREFULLY IN THE CURRENT MARKET ENVIRONMENT! šØ
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