Large CBOE funds resume bitcoin sales – COT

Posted 11 July, 2018

The Commodity Futures Trading Commission (CFTC) released the Commitments of Traders (COT) for the week ending last Tuesday.

Non-commercial traders raised net short position on bitcoin contracts by 130 to 1,500. Large speculators have started lifting net positions after a 2-week decline. Net short positions recovered from the bottom recorded since March 20.

As for nonreportable positions, net long positions on bitcoin contracts rose by 130 to 1,500. Besides, they have started raisin positions also after a 2-week decrease.

Commercial traders that usually sell against the main trend, did not take part in trading.

Open interest dropped 540 to 5,250 contracts. Bearish index of large speculators (short and long positions) increased 130 to 1,560 over the period under review.

Summary: COT reports on bitcoin show stronger bearish sentiments among the large speculators that resumed raising net position on bitcoin decline after a 2-week decline. Large speculators reduced BTC purchases by 15% and sales – 8%. At the same time, net position on BTC decline added 10% over the week. Further trend development can promote cryptocurrency weakening.

Small speculators mostly cut sales over the period under review by 20%. Their purchases are almost 3-fold above sales. However, they still expect the crypto coin to rise, though small speculators usually do not have a strong influence on the market.

Notice: COT data is fundamental and used for mid- and long-term trading. Large speculators or non-commercial (banks, investment funds) usually trade in line with the trend. At the same time, small speculators (nonreportable positions) usually have no strong impact on the market. Net position is the difference between the number of contracts for buy and sale. Open interest means the total number of opened positions in the market.

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11 July, 2018 17:31

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