Smart Money Goes Long on Bitcoin: Increase by 88% Just Before Price Rally
The latest Data from the US Commodity and Futures Trading Commission shows institutions increasing their long buys by 88% between March 26th and April 2nd, coinciding with the BTC price rally soaring from $4,100 to $5,300 in minutes.
A total of 315 long Bitcoin futures contracts were opened on CME’s platform by April 2nd with short positions decreasing by 63% or from 241 to 89. On that date, CME saw 404 total contracts opened- 78% long and 22% short. On their platform, Bitcoin futures contracts represent 5 BTC each and are cash settled in US dollars, rather than physically delivered Bitcoin.
Institutional investors could be signaling a change in investor interest, instead becoming bullish on Bitcoin as it upswings.
April is showing most smart money is betting that bitcoin will continue to rise in value and Bitcoinist reported institutional trading has grown for 4 months consecutively with CME Group mainly responsible.
TradingView has also shown long positions increasing with retails traders over the past five days on cryptocurrency exchange Bitfinex. Even the number of short positions have decreased, suggesting sentiment flipped on April 8th, in reaction to the pricing rally and, by association, the institutional shift.
Willy Woo, independent analyst, has suggested this could be the end to the prolonged bear market, saying the surge reaching above $5,000 means the beginning of a long-term upwards trend. He even tweeted a series of graphs and explanations for his thinking:
Introducing Cumulative Value Days Destroyed (CVDD) and Balanced Price. New experimental models using the early metric of Bitcoin Days Destroy. Check @kenoshaking's handle very shortly for Balanced Price, I'll dig into CVDD here. pic.twitter.com/avWRxBRu3d
— Willy Woo (@woonomic) April 9, 2019
Veteran trader, Peter Brandt, echoes this sentiment. He famously predicted the value surge of BTC at $20,000 and the 80% dip to $4,000 and has been quoted saying he wouldn’t be surprised if “BTC enters a new parabolic phase.”
Could the low value of Bitcoin finally be at its end?
Live Bitcoin (BTC) Price:
1 BTC/USD =$47,476.4041 change ~ 2.27%