In recent days, Bitcoin (BTC) has lagged behind that of Ether by nearly 20%. While BTC appears to be struggling to break the $ 18,800 barrier, according to the derivatives market, both cryptocurrencies are showing the same optimism.
BTC / USD and ETH / USD on Bitstamp. Source: Data on digital assets.
Ether is entering an equivalent rampage as the Eth2 network evolves, and this optimism is reflected in the options markets. Although there is no similar price movement from BTC, Bitcoin traders are looking flawless and the data shows they remain optimistic.
Ether and Bitcoin futures are still bullish
This is a useful procedure for fundamental indicator analysis as it compares the level of the futures contract to the current price of regular spot exchanges.
Healthy markets typically show 5-10 percent annually in a position known as contango. On the other hand, discounted futures trading usually occurs in heavily bear markets.
The ether futures base ranged from 10% to 20%, indicating a bullish outlook. Instead of leaving ether on the derivatives exchange, the seller prefers to use it for betting. Therefore, it is natural to require a bonus for each trade.
BTC futures premium behaved the same way despite weak negative results today. Had traders abandoned their hopes for continued beef promotion, that number would have fallen below 10% year-on-year.
There is only one reason a trader would pay such a higher premium on a futures contract and the reason is bullish. This figure can be interpreted as a tax on the use of long positions.
Options traders don’t want to enter bearish trades
The Delta 25 deviation display also provides useful insight into the sentiments and sentiments of professional traders.
A positive partial deviation of 25% indicates that the buy options are worth more than the comparable (buy) options, indicating a downtrend. On the other hand, negative sentiments indicate bullish tendencies.
The index typically ranges from -20% to + 20% in neutral markets, although this has not been the case for Ether in recent weeks.
Note how the Ether futures base weighed on the intense optimism on November 21, which is very unusual.
This data indicates that options traders are reluctant to sell additional protection. The 20% deviation index indicates that derivative investors remain optimistic despite a 28% rise in the past seven days.
One might expect BTC options traders to be less optimistic after the negative result today, but that didn’t happen.
The data shows that BTC options traders are incredibly optimistic at the moment, no matter how tough the last few days have been. As such, there is no indication that sentiment is coming from the derivative markets.
While there are several ways to read the same chart according to technical analysis, BTC is not entirely optimistic.
Traders who prefer shorter time frames may have an explanation of the recent price movement. Meanwhile, professional investors know how difficult it can be to predict the Bitcoin markets. Therefore, they are not ready to lower their positive expectations from a whim.
So far, there is no reason to doubt the positive progress of Bitcoin.