At what level do institutional buyers join the bitcoin rally?

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The bitcoin bulls are losing control and the price of the bitcoin is back where the rally has taken off.The rally started on July 13, when the price is reduced to 6081 and there were serious doubts that the price could break under the sign of $ 6,000. The price of bitcoin began to consolidate from July 19 to July 23 and traded in a range of $ 7,236 a $ 7,780 It was July 25th that the price of the bitcoin reached a maximum of $ 8,480, which makes investors confident about the possibility of touching $ 10,000, however the price has been taken back from this level and we are back in the consolidation range mentioned above

How bitcoins rose to over $ 12 000 for a BTC, many Central banks, such as the ECB or the US Federal Reserve, warn of the risks of a bubble: Britain and the ECB want to monitor trade for suspicions that detect money: The principal US derivative regulator said it would allow CME Group Inc. (CME.O) and CBOE Global Markets Inc. (CBOE.O) to list BiTcoin futures contracts. Toulouse. 6 December 2017. (Photo by Alain Pitton / NurPhoto via Getty Images)

It is well known that the recent price increase is mainly due to the following reasons, and I mentioned this here :

  • Coming soon Institutional investors
  • Incoming Bitcoin ETF
  • The bulls return to the city

However, the request for the Bitcoin ETF, which was supported by Tyler and Cameron Winklevoss, was rejected by the United States Securities and Exchange Commission. Many have said that the reason why it was rejected by the SEC was because the department is still skeptical in the cryptocurrency market. The reality is that the SEC is only skeptical about the structure of the ETF presented by Winklevoss. & nbsp; The department is still evaluating several other applications for cryptographic ETFs and the fact is that bitcoin futures are traded on two exchanges. Therefore, it is almost impossible that we will not see the ETF with Bitcoin approved by the SEC.

About bulls, here is something that requires attention. Firstly, the volatility of bitcoins started to peak. This could attract speculators who breathe greater volatility. The 30-day volatility slowed down in May 2018.

Bitcoin's 30-day volatility could attract new buyers Source: Bloomberg, ThinkMarkets, Twitter: @ NaeemAslam23

Talking about bulls and bears, it is important to look at the report of the commodity futures trading commission in the United States. Every Friday, the CFTC publishes its report on Bitcoin's active future. The report divides the short and long positions. Moreover, it classifies them further as non-commercial, commercial and non-reporting positions. The difference between them can be read here .

The following table tells a very compelling story. & nbsp; In panel 2 of the chart, we have the price of the bitcoin. Shows an important shopping area; an area where the price has been entered and withdrawn, from $ 6,600 to $ 5,796. The significance of this is that institutions are heavily involved in purchases at this level. The proof of this is in the first panel of the graph. Shows net positions for bitcoin futures. Unfortunately for the bulls, the pressure is still on the sales side as the net positions show that there are more sellers than the buyers on the market.

Bitcoin Net CFTC data show that Sellers maintain control Sournce: Bloomberg, ThinkMarkets, Twitter: @ NaeemAslam23

However, the important element is that these net positions are found at the lowest point when the price is negotiated in the area of ​​purchase mentioned above. So, it is evident that even among the bears there are those who are not willing to keep their positions when the price is in the shopping area, or they prefer to join the bulls.

Disclosure: I hold Bitcoins

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Bitcoin bulls are losing control again and the price of the bitcoin is back where the rally has taken off.The rally started on July 13, when the price it fell to 6081 and there were serious concerns that the price could break below $ 6,000. The price of bitcoin began to consolidate from July 19 to July 23 and traded in a range of $ 7,236 to $ 7,780. July the bitcoin price reached a maximum of $ 8,480, making investors confident about the possibility of touching $ 10,000., the price is passed by this level and we are again in the consolidation range mentioned above.

While the bitcoins rise at over $ 12,000 for a BTC, many central banks such as the ECB or US Federal Reserve warn of the risks of a bubble, and the ECB wants to monitor tade for suspicions that detect money. of US derivatives stated that it would allow CME Group Inc. (CME.O) and CBOE Global Markets Inc (CBOE.O) to list future Bitcoin contracts. Toulouse. 6 December 2017. (Photo by Alain Pitton / NurPhoto via Getty Images)

It is well known that the recent price increase is mainly due to the following reasons, and I mentioned this here:

  • Institutional investors coming on board
  • Bitcoin ETF coming soon
  • Bulls is back in town

However, the request for the Bitcoin ETF, which was supported by Tyler and Cameron Winklevoss, was rejected by the US Securities and Exchange Commission. Many have said that the reason why it was rejected by the SEC was because the department is still skeptical in the cryptocurrency market. The reality is that the SEC is only skeptical about the structure of the ETF presented by Winklevoss. The department is still evaluating several other applications for cryptographic ETFs and the fact is that bitcoin futures are traded on two exchanges. Therefore, it is almost impossible that we will not see the ETF with Bitcoin approved by the SEC.

Speaking of bulls, here is something that requires attention. Firstly, the volatility of bitcoins started to peak. This could attract speculators who breathe greater volatility. The 30-day volatility slowed down in May 2018.

Bitcoin's 30-day volatility can attract new buyers Source: Bloomberg, ThinkMarkets, Twitter: @ NaeemAslam23

Speaking of bulls and bears, it is important to look at the report of the commodity futures trading commission in the United States. Every Friday, the CFTC publishes its report on Bitcoin's active future. The report divides the short and long positions. Moreover, it classifies them further as non-commercial, commercial and non-reporting positions. The difference between them can be read here .

The following table tells a very compelling story. In panel 2 of the chart, we have the price of the bitcoin. Shows an important shopping area; an area where the price has been entered and withdrawn, from $ 6,600 to $ 5,796. The significance of this is that institutions are heavily involved in purchases at this level. The proof of this is in the first panel of the graph. Shows net positions for bitcoin futures. Unfortunately for the bulls, the pressure is still on the sales side as net positions show that there are more sellers than buyers on the market.

Bitcoin Net CFTC data show that Sellers maintain control Sournce: Bloomberg, ThinkMarkets, Twitter: @ NaeemAslam23

However, the important element is that these net positions are found at the lowest point when the price is negotiated in the area of ​​purchase mentioned above. So, it is evident, that even among the bears, there are those who are not willing to maintain their positions when the price is in the shopping area, or prefer to join the bulls.

Disclosure: I hold Bitcoins

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