Bittime - Technical indicators are sending out danger signals for altcoin fans. The crucial ratio between Ether (ETH) and Bitcoin (BTC) is on the verge of a bearish “death cross” pattern .
These developments, coupled with investor sentiment in the options market, point to potential difficulties for alternative crypto assets in the near future.
What is a Death Cross?
A death cross occurs when the short-term moving average falls below the long-term moving average on the price chart.
In the context of the ETH/BTC ratio, this signals a potential long-term decline in the relative strength of Ether compared to Bitcoin.
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Technical Analysis Paints a Grim Picture
According to data from TradingView, the 50-week moving average of the ETH/BTC ratio is expected to fall below the 200-week moving average.
This technical pattern has historically coincided with periods of risk aversion and prolonged underperformance for altcoins.
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Historical Context
Since 2017, the crypto market has witnessed a cycle of dominance between Bitcoin and altcoins. When the ETH/BTC ratio is trending up, it often reflects a period of increased risk appetite among traders, who prefer altcoins to Bitcoin. Conversely, a decline in the ratio indicates a shift towards risk aversion.
ETH/BTC Ratio Plummets
TradingView data shows that the ETH/BTC ratio has fallen by almost 10% in 2024, currently standing at around 0.048. This decline further underscores the potential weakness of altcoins.
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Options Market Hints at Ether Underperformance
Market analysis firm QCP Capital shows a significant increase in selling activity for ETH call options.
This option gives the buyer the right, but not the obligation, to purchase ETH at a certain price in the future. The spike in sales indicates growing fear of Ether dropping in value.
Deribit Options Data Reinforces Bearish Sentiment
The pricing structure of Bitcoin and Ether options traded on Deribit, a leading derivatives exchange, also paints a worrying picture for Ether.
Unlike Bitcoin (BTC), where call options dominate across maturities, Ether put options (which offer protection against price declines) trade at a premium, indicating a bearish bias among investors.
Conclusion
The convergence of technical indicators and investor sentiment in the options market indicates a potentially challenging period for altcoins. While future market movements remain uncertain, the “death cross” pattern and increasing risk aversion pose a significant threat to altcoin enthusiasts.
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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