- Bitcoin has consolidated within the $ 30,000 region in recent days and weeks
- Bulls and bears have largely reached an impasse, with buyers and sellers neither able to spark any trend
- This is because large institutional inflows are showing signs of declining, with these buyers largely seen as those responsible for the recent market-wide rise
- CME’s latest Commitment of Traders (CoT) report reveals a striking trend – institutions are increasingly adding to their long exposure
- This seems to invalidate the idea that institutions are slowing down their accumulation habits and may indicate an impending wave of purchases from these parties
Bitcoin has been experiencing mixed price action lately, with selling pressure in the top USD 30,000 region slowing its rise as bulls and bears largely land on a deadlock.
Value crypto Medium-term market trends can largely, if not entirely, depend on whether Bitcoin can continue to stabilize or break above USD 40,000.
Any strong rejection here could cause the crypto to suffer some notable losses that could potentially lead to altcoins following the same lead and selling too.
A positive trend that seems to bode well for Bitcoin’s outlook is the growing long-term exposure of institutions using the CME.
This trend suggests that institutions are still pouring money into the market.
Bitcoin is stagnating while the consolidation phase continues
At the time of writing, Bitcoin is trading just under 2% on its own current price from $ 36,700. This marks a notable drop from the nearly $ 38,000 daily highs set a few hours ago.
The entire market returned with BTC, but ETH and other altcoins are all trading significantly higher than where they were a few days ago.
Institutional traders are increasingly long on BTC
A positive trend for Bitcoin is the growing presence of institutions in the market, which is a big part of why it has risen so strongly in recent months.
While they may be bidding less aggressively on BTC as it hovers around its all-time high, data from the CME’s latest Commitment of Trader report indicates that long-term interest in BTC among institutions is steadily growing.
“January 12 – CME $ BTC Commitments of Traders (COT) Report – Open Interest: 12,039 Up 6.5%”
Image Courtesy of Unfolded. Source: TradingView.
The next few days should shed some light on whether or not Bitcoin’s constant rejection in the higher $ 30,000 region will affect its medium-term trend.
Featured image from Unsplash. Charts from TradingView.