After creating a new bottom at $11,150, Bitcoin is now pushing higher and reaching out to the $11,650+ level. Institutions have started reacting to the price movement by closing their shorts on the Bitcoin futures market at CME.
A good indication for pills
Bitcoin is trading above a crucial support level as the weekly candles closed. This shows a good sign for the bulls who can now start looking at bigger profits. Unfolder, a crypto data tracker reported last week that institutional investors have opened their biggest ever short positions for Bitcoin on CME futures. These larger traders have 3,119 BTC contracts open for shorts.
On August 30, Unfolded shared yet another data set, revealing new trends from the CME Commitment of Traders Report, which is published each week. The report suggests that institutions have just closed 2,000 contracts on the short side in Bitcoin. This is happening at the same time that retail traders on the platform have closed a majority of their long positions in Bitcoin futures.
Move similar to March 2020
The last time institutional investors closed a vast portion of their short positions was in March when the price of the coin started moving from new lows to a fresh upside. However, it is unclear if similar trends will be witnessed this time as well. The move suggests that several eyes are hooked on the market because of which Bitcoin CME has witnessed its biggest position shift to date.
The reason behind this shift is unclear but trends favor the positive price movement of Bitcoin. Senior commodity analyst at Bloomberg Intelligence, Mike McGlone commented on the move and said,
“Stuck between 3-9x over the past few years, the price of #Bitcoin per ounce of #gold tilts the crypto toward resuming appreciation if volatility history tells us anything. The Aug. 19 cross rate of 6x is the same as in 2017, yet Bitcoin’s volatility has dropped relative to gold.”
Macro factors, like the Federal Reserve’s willingness to allow inflation to move above 2% could also be responsible for the movement.
Credit: Source link
