Hedge Funds Significantly Increase Their ShorHedge Funds Significantly Increase their Short Bitcoin Positionst Bitcoin Positions


  • Significant CME gap still sitting, “institutional money drove this thing up, and they can drive it back down”
  • Institutions in play, BTC price dropped about 20% since hedge funds increased their short positions significantly last week

On July 10, Bitcoin price retook $13,000 after going down to $9,600, the drop from 2119 high at about $13,900.

Throughout the second half of the last week, BTC price continued moving downwards. On the weekend, it took a deeper drop to $9,855. Though we have made it above $10,300, analysts see more pain ahead.

However, market analyst and trader, Benjamin Blunts says, if the current move ends up creating a triangle, we will be making new highs.

This upside move could be expected as economist and trader Alex Kruger reports of Bitcoin oversold signal triggers. This he says has triggered 9 times in the past 1 year and “has always marked a local bottom.”

On the flip side, Blunts says this is a flat correction that would take us to $9,000. But this won’t be the end of the drop. A move down to $9,000, according to him, would open the doors for the possibility of the move being the beginning of a larger and more complex correction that per the chart shared by him could take us to $7,200.

Institutions In Play

On one side we have a significant CME gap still sitting in the BTC price chart. But at this point, they could turn out to be just a meme. As a matter of fact, these gaps have been bullish for BTC price, so it’s hard to tell if BTC price would be affected by those.

However, as trader Moon Overlord points out, “institutional money drove this thing up, and they can drive it back down.”

On the other hand, the latest Commitment of Trader report from the CFTC shows that hedge funds have increased their short positions significantly, just before we went to $13,000. Since then, Bitcoin has dropped about 20 percent, after registering a heavy sell-off this weekend.

But there is no need to panic. Bitcoin is still in its early stages, with less than 1 percent of the population having exposure to Bitcoin. An enormous part of this market is still unpenetrated.

Bitcoin has a hard cap of 21 million, this means down the line, millions of people will be owning Bitcoin though the majority will only have a fraction of the digital asset. This will only add to BTC value in the long term.

Bitcoins’ scarcity puts it in the league of gold as stated by the Fed Chairman Jerome Powell during his testimony, and bitcoin’s market value currently represents less than 3 percent of gold’s $7 trillion market cap.

For Bitcoin, it’s the sky’s the limit.

Bitcoin (BTC) Live Price

1 BTC/USD =$50,355.1522 change ~ 1.00%

Coin Market Cap

$942.14 Billion

24 Hour Volume

$31.53 Billion

24 Hour VWAP

$49.35 K

24 Hour Change

$505.06

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