Bitcoin is starting to look heavier. ETH is also in the red, but the way these two assets are moving in Futures is different. BTC is dropping deeper, while in ETH open interest is shrinking even though the majority of accounts are still long.
$BTC $82.410–$83.000 | $ETH $2.514–$2.546
There is one reason why we as traders should pay more attention to BTC right now. The price is down, 4-hour volume rose from 2,742 to 3,150 BTC, while OI briefly increased and then contracted. So market activity is rising as price weakens, but open interest is starting to decline.
ETH has a slightly different story: the 24-hour drop is only 0.50%, smaller than BTC’s 1.23% decline. But ETH OI did fall from 2.343 million to 2.298 million ETH. At the same time, nearly 73% of accounts are still leaning long.
If BTC loses $82.410, the next wave of pressure could be felt more strongly. Conversely, if it manages to move back above $83.000, we’ll see whether the rise is followed by an increase in OI.
ETH has its own test at $2.514. As long as it hasn’t moved back above $2.546, its recovery doesn’t look convincing yet.
For me, BTC is still the main driver of market sentiment, while ETH is interesting for seeing whether the accumulated long positions can hold as prices weaken.
$BTC $82.410–$83.000 | $ETH $2.514–$2.546
There is one reason why we as traders should pay more attention to BTC right now. The price is down, 4-hour volume rose from 2,742 to 3,150 BTC, while OI briefly increased and then contracted. So market activity is rising as price weakens, but open interest is starting to decline.
ETH has a slightly different story: the 24-hour drop is only 0.50%, smaller than BTC’s 1.23% decline. But ETH OI did fall from 2.343 million to 2.298 million ETH. At the same time, nearly 73% of accounts are still leaning long.
If BTC loses $82.410, the next wave of pressure could be felt more strongly. Conversely, if it manages to move back above $83.000, we’ll see whether the rise is followed by an increase in OI.
ETH has its own test at $2.514. As long as it hasn’t moved back above $2.546, its recovery doesn’t look convincing yet.
For me, BTC is still the main driver of market sentiment, while ETH is interesting for seeing whether the accumulated long positions can hold as prices weaken.