While the leading cryptocurrency Bitcoin (BTC) rose above $108,000 today, investors do not believe that this rise is real.
At this point, cryptocurrency analysis platform Santiment said that the data also points to a decline expectation in Bitcoin.
Santiment analyzed the latest situation in Bitcoin and Ethereum (ETH). He said that BTC recorded a negative funding rate while Ethereum recorded positive rates.
Stating that BTC and ETH are showing opposite trends, Santiment said that short positions in Bitcoin and long positions in Ethereum are increasing.
Stating that the recent recovery in Bitcoin has led investors to short positions, Santiment argued that this situation could trigger a short squeeze in Bitcoin and further rise.
“Short positions in Bitcoin have increased significantly compared to long positions. If short positions overheat, the probability of a temporary recovery in Bitcoin increases even more. This is called a short squeeze.”
Ethereum Rise Depends on Bitcoin!
Stating that Ethereum shows the opposite trend compared to Bitcoin, Santiment said that there are currently more long positions in ETH than short positions.
However, Santiment stated that this still does not indicate a rise for ETH, arguing that ETH’s rise is limited due to its correlation with Bitcoin.
At this point, Santiment stated that Ethereum remains correlated with Bitcoin, saying:
“While long positions are somewhat dominant on Ethereum, Ethereum’s potential for a significant standalone rally without a Bitcoin rally is limited.”
*This is not investment advice.
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