ETHUSD and the Hidden Bullish Flippening of Sentiment

2 weeks ago, BTCUSDLONGS/BTCUSDSHORTS was 1.6 and ETHUSDLONGS/ETHUSDSHORTS was 0.55.

Today, BTCUSDLONGS/BTCUSDSHORTS is 1.1 with shorts at a near ATH and ETHUSDLONGS/ETHUSDSHORTS is at 1.9.

This seems...explosive...for one or both of the top two cryptocurrencies. ETH has seen a noticeably larger fall from its peak for 1424 in January, having lost about 3/4 of its peak value than BTC has since December at about 2/3. March was especially harsh for ETH relative to BTC.

ETH has traded with BTC in an increasingly correlated manner recently - by my occasional measurements at a ~1.2x multiplier.

It's additionally bizarre that ETH sentiment is this bullish given it's made a nearly perfect continuation bear flag. Leveraged bulls appear to be calling bulls**t.



I have several guesses here, but the one I'm most inclined to believe is that ETH is the "smart" hidden bullish bet on BTC - it's effectively a leveraged bet that both will rise but ETH has more running room when it does, and also one that's hidden a step out of sight from BTC's more frequently watched ratios. It's also setting ETH up for a long squeeze if BTC starts falling through the floor.

Either way, ETH has been making cleaner chart patterns than BTC and due to its harsher recent downtrend channel, also gives us a read that the next breakout up or down for both has to happen in the next 2 days, or all hell probably breaks loose with ETH getting a major upside breakout versus BTC.

I'm inclined to call this a hidden bullish signal for BTC' and ETH's correlated next move.



I'm an amateur and you definitely shouldn't take anything I say as financial advice. I'm interested in any feedback.