PART 2 of BitOoda Morning Report 1/2/2019:
The second chart of the day we will look at is ETH/BTC spread. Let us revisit our BitOoda Morning Report from 12/17/18: “Ethereum was in a bear market with other crypto-assets, it is in a more mature stage than Bitcoin. That made us look at a relative value trade of ETH/BTC pair. Coincidentally, the ratio made a 0.026 low just as we were writing the commentary. There are a lot of historical highs and lows in the 0.026-0.03 range that seem to provide a support/resistance level. The pair has rallied significantly in a short period of time to 0.035 generating a nearly 35% return in a matter of days.
We believe that to a trader who is constructive on the space there is still a lot of room to the upside with 0.05 level providing the first significant resistance.”
I have been ‘teasing’ an ETH vs BTC Derivative spread piece that unfortunately moved faster than we anticipated and got away from us. Our original thoughts were to Buy a Fence aka Risk reversal aka Collar; buying the .05 call and selling the .025 put for relatively low premium. This concept was originally the thought process around .035, however in a matter of days we are trading near .04.
ETH has been on a tear and we think this is what is leading the rally today in all Digital assets.
If you want to follow our daily newsletter, join our mailing list here
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The second chart of the day we will look at is ETH/BTC spread. Let us revisit our BitOoda Morning Report from 12/17/18: “Ethereum was in a bear market with other crypto-assets, it is in a more mature stage than Bitcoin. That made us look at a relative value trade of ETH/BTC pair. Coincidentally, the ratio made a 0.026 low just as we were writing the commentary. There are a lot of historical highs and lows in the 0.026-0.03 range that seem to provide a support/resistance level. The pair has rallied significantly in a short period of time to 0.035 generating a nearly 35% return in a matter of days.
We believe that to a trader who is constructive on the space there is still a lot of room to the upside with 0.05 level providing the first significant resistance.”
I have been ‘teasing’ an ETH vs BTC Derivative spread piece that unfortunately moved faster than we anticipated and got away from us. Our original thoughts were to Buy a Fence aka Risk reversal aka Collar; buying the .05 call and selling the .025 put for relatively low premium. This concept was originally the thought process around .035, however in a matter of days we are trading near .04.
ETH has been on a tear and we think this is what is leading the rally today in all Digital assets.
If you want to follow our daily newsletter, join our mailing list here
eepurl.com/gbQv3v