- According to figures from the data analysis company Skew Markets, institutional investors are preparing for a new Bitcoin rally.
- In particular, the Bitcoin long positions have risen significantly compared to the previous week.
Bitcoin’s volatility has continued to increase since the pump last week, providing traders with optimal conditions to make quick profits. Industry analysts questioned the sustainability of the sudden rise in prices. New data, however, shows that Bitcoin might break out again soon.
Institutional investors prepare for Bitcoin rally
The analysis company Skew Markets provides data for Bitcoin and Ethereum derivatives to companies worldwide. The latest data indicates that Wall Street is preparing for Bitcoin’s imminent price rise. Companies’ net long positions have risen from 660 BTC last week to 870 for this week (+30% rise).
Institutional longs at CME – one month high
Could we see a breakout soon > 1.5k BTC? pic.twitter.com/y9SmywwVE0
— skew (@skewdotcom) November 2, 2019
The data is provided by the CME and includes the following assets:
Institutions are institutional investors, including pension funds, foundations, insurance companies, investment funds and those portfolio and investment managers whose clients are predominantly institutional clients.
Bitcoin Trader Josh Rager also describes that the short-term trend for Bitcoin looks bullish and a price breakout upwards is possible. However, he warns against trading too large positions as the market is still very volatile.
Analyst and Bitcoin Trader Filbfilb states that Bitcoin will fall to USD 8,500 to close the gap in CME futures. As we have already reported, there have been 3 large gaps in the price chart of the CME Bitcoin futures in the past. Bitcoin’s price has consolidated to the gap level in the past, at the time of the Bitcoin peak of USD 20,000 in 2017, before a further upward movement followed.
Last week’s blockchain and bitcoin hype in China should not be forgotten. President Xi praised the Blockchain technology and its potential for use in his own country. It also became known that the oldest wallet supplier for Bitcoin from China is secretly continuing the development work. Cryptocurrencies that have their main set in China, such as TRON or NEO, recorded strong price increases of over 30% as a result.
Bitcoin Futures on Bakkt also rise
After a weak start of the Bitcoin Futures on the Exchange Bakkt, the trading volume of the “physically” covered contracts increased last week. The all-time high is 1183 contracts traded daily, with a total of 623 contracts traded on Friday.
Daily summary of Friday's Bakkt Bitcoin Monthly Futures:
? Traded contracts: 623 (+81%)
? Day before: 345
? All time high: 1183
— Bakkt Volume Bot (@BakktBot) November 2, 2019
At the time of writing, Bitcoin recorded a sideways movement (- 0.32%) to a price of USD 9,242.91 within the last 24 hours.
It remains to be seen in which direction the price of Bitcoin will move.