Bitcoin (BTC): US speculators prepare for rally
Bitcoin (BTC): US speculators prepare for rally

According to the COT (Commitments of Traders) reports provided by the Commodity Futures Trading Commission (CFTC) - for the week ending last Tuesday:

According to the COT (Commitments of Traders) reports provided by the Commodity Futures Trading Commission (CFTC) - for the week ending last Tuesday: Large speculators (NON-COMMERCIAL) reduced their net position for selling Bitcoin contracts by 0.10 thousand contracts to 0.77 thousand. Large speculative players reduced their net position for sale for the second week in a row, and for six weeks from the last 9. The net position is minimal since April 16th. Small speculators (NONREPORTABLE POSITIONS) reduced the net position for the purchase of Bitcoin contracts by 0.10 thousand contracts to 0.77 thousand.

Small speculators reduce the net position for the purchase also six weeks from the last 9. Hedgers (COMMERCIAL), usually trading against the primary trend, did not participate in the auction. Open interest decreased by 0.35 thousand contracts to 3.09 thousand. The bearish index of large speculators (the ratio of the number of contracts for sale to the number of contracts for purchase) grew over the week by 0.05 to 1.52 (due to reduced investments).

Summary: COT Bitcoin reporting data reflects bullish sentiment among significant speculators. Large funds last week actively reduced their positions before the monthly expiration of futures. Purchases were decreased by 18%, sales - by 16%, which led to a decrease in the net area for a reduction of BTC by 11%. At the same time, the net position updated the lows for the last six months. Bullish sentiment has been growing for two months.

Continuation of this trend may contribute to the growth of cryptocurrency. The number of large buyers decreased over the week by 3 to 21. The number of large sellers decreased by 1 to 18. Small speculators in the last week mainly increased sales, which they grew by 11%.

Small speculators noted an increase in bearish sentiment, but this group of traders usually does not have a significant impact on the market.

Note: COT report data is fundamental and is used mainly for medium and long-term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually trade with the trend. Small speculators, NONREPORTABLE POSITIONS - usually do not have much impact on the market. Hedgers, COMMERCIAL (operators, large companies) usually trade against the trend. Net position is the difference between the number of contracts for the purchase and sale. Open interest is the sum of all open positions in the market.

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Nathan George

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