- Bitcoin has been consolidating within the $ 30,000 region for the past few days and weeks
- Bulls and bears have largely reached an impasse as both buyers and sellers cannot trigger a trend
- This is because large institutional inflows are showing signs of rejuvenation, with these buyers largely being viewed as the ones responsible for the recent market-wide surge
- The latest Commitment of Traders (CoT) report by the CME shows a remarkable trend – institutions are increasingly increasing their long exposure
- This seems to defeat the notion that institutions are slowing down their accumulation habits and could indicate an impending wave of two purchases from these parties
Bitcoin has seen mixed price moves lately, with selling pressures in the top $ 30,000 region slowing its rise as the bulls and bears largely hit an impasse.
Where, in the medium term, crypto market trends may largely, if not completely, depend on whether or not Bitcoin can continue to stabilize or break above $ 40,000.
Any strong rejection here could cause the crypto to post some notable losses, potentially causing altcoins to follow suit and sell out as well.
One positive trend that seems good for Bitcoin’s outlook is the growing commitment of institutions using CME.
This trend suggests that institutions are still putting money into the market.
Bitcoin stagnates as the consolidation phase continues
At the time of writing, Bitcoin is trading just under 2% at its current price of $ 36,700. This is a remarkable drop from the daily highs of nearly $ 38,000 set a few hours ago.
The entire market has declined with BTC, but ETH and other altcoins are all trading significantly higher than they were a few days ago.
Institutional traders are increasingly relying on BTC
A positive trend for Bitcoin is the growing presence of institutions in the market, which is a big part of the reason why Bitcoin has rallied so strongly in recent months.
While they may be bidding less aggressively on BTC as it hovers around its all-time highs, data from the CME’s recent Commitment of Trader report suggests that institutions’ longstanding interest in BTC is steadily increasing.
“January 12th – CME $ BTC Commitments of Traders (COT) Report – Open Interest: 12,039 plus 6.5%”
Image Courtesy of Unfolded. Source: TradingView.
The coming days should shed some light on whether the constant rejection of Bitcoin in the over $ 30,000 region will have an impact on the medium-term trend.
Featured image from Unsplash. Charts from TradingView.