Bitcoin bulls have taken residence in the crypto market as price reaches $6,920 level while altcoins take a hike in tandem with Bitcoin. With the shorts declining and longs to get excited, bulls are expected to take the price above the $7k mark.
Bitcoin bulls invade the crypto market
Bitcoin is enjoying significant gains as it climbs over $7,000 barrier. With 24-hours gains of about 4 percent, bulls seem to have taken the residence in the crypto market. Starting the day at $6,872, Bitcoin reached $7,126 at one point.
The one-day price chart below shows the jump in bitcoin price:
At the time of writing, Bitcoin has been exchanging hands at $7,070. Bitcoin bulls have been shaken off as Bitcoin ETF rejection losing its effect in the market with emphasization from the experts that market doesn’t really need them.
Bitcoin ETF rejection isn’t all that important says Jonathan Hamel of Acadamie Bitcoin in Montreal because institutional Bitcoin products are being built (Coinbase, Bank of America today) and investors will come to crypto through custodian solutions.
In an interview with Forbes: pic.twitter.com/Ma0nUoUSr9
— Joseph Young (@iamjosephyoung) August 27, 2018
24-hour percentage change in top cryptocurrencies:
- Ethereum (ETH) – 4.79% at $290
- XRP – 7.24% at $0.351
- Stellar (XLM) – 5.87% at $0.231
- IOTA (MIOTA) – 17.92% at $0.708
- Tron (TRX) – 15.86% at $0.0.027
Bulls gonna win this time, shorts are disappearing while longs are excited
If we take a look at Bitcoin short positions where a bet is made that an asset will fall in value, they have been on a rise since Bitcoin hit its peak last year.
However, recently there has been a significant shift in those shorts as according to the latest Commitments of Traders (COT) report shared by US CFTC, the bitcoin bears are easing off from the market. The net position on bitcoin futures has declined by 1,266 for the week ending August 21. As for short positions, it has fallen down to 3,426 which is a decline of 210 contracts in comparison to its previous week. However, the long positions are up by 56 contracts at 2,160.
According to Brian Kelly, Bitcoin bull and cryptoanalyst from CNBC, the data from CME exchange suggests that the overall Bitcoin futures market is indicating a rising demand and maturity:
“Here’s CME Futures open interest of large holders. [As of] April, you’re starting to see a big increase… about an 85 percent growth rate. If you extrapolate that out, by February 2019, you’re going to have a very robust market here.”
However, a bit of caution is always there as the Relative Strength Index (RSI) show that price can go a bit higher but turn towards exhaustion. Not to mention that Stochastic already displays overbought scenario, so it is expected Bitcoin can again decline. But the unpredictable crypto market rarely follows a technical pattern, so for now, waiting for more bulls is the way to go.