Bitcoin and Ethereum Dominate Long Positions Despite Marketwide Cryptocurrency Decline

As the cryptocurrency market experiences broad declines, Bitcoin (BTC) and Ethereum (ETH) emerge as exceptions, showcasing significant long-position momentum against a backdrop of short pressure on other digital assets. Analyzing the trading metrics, these two leading cryptocurrencies illustrate resilience even as altcoins face bearish sentiment.

Bitcoin and Ethereum: Strength in Long Positions

Key data from CoinGlass indicates a subtle but noteworthy dominance of long positions for both Bitcoin and Ethereum, diverging from broader market trends. As of October 26, Bitcoin's long positions accounted for 51.02% of total trades within a four-hour window (9 a.m.), surpassing short positions at 48.98%. Earlier that day, at 1 a.m., Bitcoin's short positions had been dominant at 53.52%, with longs sitting at 46.48%. This shift demonstrates a gradual increase in trader confidence toward Bitcoin, even as its price dropped by 2.96% over the preceding 24 hours.

Similarly, Ethereum, which saw a sharper price decline of 3.83% during the same time, also exhibited a preference for long positions. ETH displayed a long-to-short ratio of 50.71% ($7.59 billion, approximately KRW 10.3 trillion) to 49.29% ($7.38 billion, approximately KRW 9.9 trillion). These metrics continue to highlight investor anticipation of a potential rebound for both of these flagship cryptocurrencies.

Broader Market Sentiment: Altcoins Under Short Pressure

While Bitcoin and Ethereum appear to resist the downward pull, altcoins have uniformly succumbed to bearish sentiment, with shorts gaining the upper hand in most cases. Examining the top cryptocurrencies:

• Solana (SOL): Long positions comprised 48.77% ($2.53 billion, approximately KRW 3.4 trillion), while short positions slightly outweighed them at 51.23% ($2.66 billion, approximately KRW 3.6 trillion).
• Ripple (XRP): The long-to-short ratio stood at 48.56% ($558 million, approximately KRW 760 billion) to 51.44% ($591.3 million, approximately KRW 820 billion).
• Dogecoin (DOGE): Long positions made up 49.29% ($651 million, approximately KRW 900 billion), whereas shorts dominated at 50.71% ($669.7 million, approximately KRW 930 billion).

Other altcoins displayed even greater skewness toward short positions:

• HyperLiquid (HYPE): With 45.69% longs ($285 million, approximately KRW 400 billion) and 54.31% shorts ($339.1 million, approximately KRW 470 billion), HYPE reflects a substantially bearish trend.
• Cardano (ADA): Long positions accounted for 48.82% ($215.9 million, approximately KRW 290 billion), trailing behind shorts at 51.18% ($226 million, approximately KRW 320 billion).
• Avalanche (AVAX): AVAX showed one of the strongest short biases in the market, with longs at 45.17% ($234.1 million, approximately KRW 320 billion) and shorts at 54.83% ($284.1 million, approximately KRW 390 billion).

Even Binance Coin (BNB) leaned toward shorts, registering 51.40% ($257.9 million, approximately KRW 360 billion) compared to 48.60% longs ($243.7 million, approximately KRW 330 billion). On the other hand, Sui (SUI) offered a rare instance of near-equal sentiment, with 50.01% longs ($447 million, approximately KRW 600 billion) narrowly outpacing 49.99% shorts ($447 million, approximately KRW 600 billion).

High Volatility Signaling Uncertain Market Dynamics

The cryptocurrency market’s recent activity underscores its high volatility, with significant fluctuations across multiple trading metrics. Over the past 24 hours:

• Global trading volumes surged to $443.66 billion (approximately KRW 603 trillion), marking an increase of 52.14%.
• Outstanding open interest dropped by 3.00%, totaling $198.37 billion (approximately KRW 269 trillion).
• Liquidation volume witnessed an extraordinary spike of 298.82%, reaching $1.18 billion (approximately KRW 16 trillion).

On an aggregate level, the market's overall long-to-short ratio stood at 49.32% to 50.68%, reflecting a slight edge in favor of short positions. This ongoing tug-of-war between longs and shorts mirrors the broader uncertainty in investor sentiment amidst declining digital asset prices.

Conclusion: Bitcoin and Ethereum's Resilience Under the Microscope

As digital asset prices face downward pressure, Bitcoin and Ethereum's steady accumulation of long positions highlights their continued appeal as market bellwethers. This resilience sets them apart from a broader altcoin market that remains skewed toward short positioning. With trading volumes surging and liquidation metrics spiking, volatility remains a defining feature of the current crypto landscape. Investors and analysts alike will keep a close watch on Bitcoin and Ethereum, while cautious optimism may provide opportunities for altcoin rebounds amidst persistent market flux.