The major cryptocurrency Bitcoin (BTC) has risen above $108,000 today, but investors don't think this rise is a reality.
At this point, the cryptocurrency analytics platform Santiment said that the data is also declining for Bitcoin.
Santiment has analyzed the latest situations in Bitcoin and Ethereum (ETH). He said BTC recorded a negative funding rate and Ethereum recorded a positive rate.
Saying that BTC and ETH are showing opposite trends, Santiment said that short positions for Bitcoin and long positions for Ethereum are on the rise.
Saying that Bitcoin's recent recovery has led investors to short positions, Santimento argued that the situation could cause short pressure on Bitcoin and bring it to a further rise.
“The short position in Bitcoin has increased significantly compared to the long position. If the short position is overheated, the chances of a temporary recovery for Bitcoin are even higher. This is called the short aperture.”
Ethereum rises depends on Bitcoin!
Ethereum said it has shown an opposite trend compared to Bitcoin, while Santimento said ETH currently has a longer position than short positions.
However, Santimento said this has not yet shown an increase in ETH, claiming that the rise in ETH will be limited due to its correlation with Bitcoin.
At this point, Santimento said that Ethereum is correlated with Bitcoin, saying:
“While long positions are somewhat dominant at Ethereum, the potential for Ethereum, a critical standalone rally without a Bitcoin rally, is limited.”
*This is not investment advice.
