Leverage has climbed to yearly highs amid BTC's persistent ranging, increasing the risk of near-term long squeezes as we enter a week tightly packed with important macro events.
Preview
More ranging, more open interest, and ETH struggles
BTC and ETH have been ranging over the last week, allowing leverage to accumulate. With a downward impulse to start the week, there is an increased risk of long squeezes stemming from exorbitant offshore leverage. ETH returns to its habit of underperforming BTC, with ETHBTC pushing towards 0.052. Nonetheless, we reiterate our bullish stance on ETH as we expect relative strength this summer stemming from ETFs.
Markets remain rangebound with low volatility, but moderate ETH ETF excitement is reflected in trader positioning. A relatively quiet week, but we expect the inevitable ETH ETF launch to follow a similar (explosive) path to Bitcoin's.lg...more
As we enter the summer, positive and negative catalysts are upon us. The ghost of Mt. Gox looms over BTC, whereas Fink’s Midas touch on ETH creates a setup ripe for relative ETH strength throughout the summer. lg...more