Bitcoin and the entire cryptocurrency market have been lacking clear directionality for the past couple of weeks.
Despite forming a strong uptrend over the past month, the momentum seen by BTC, ETH, and other major altcoins is stalling. This has made it increasingly unclear as to just how strong the present uptrend is.
Analysts are noting that all eyes are closely watching to see how the US Dollar trends in the near-term, as this may be the primary factor that determines where BTC trends next.
Institutional investors on the CME seem to believe that strength in the US Dollar will create a headwind for Bitcoin, as they are now shorter on BTC than ever before.
Bitcoin Consolidates as All Eyes Turn Towards the US Dollar
Bitcoin and the US Dollar have formed a crystal clear inverse correlation to one another in recent weeks.
This has done little to offer clarity into Bitcoin’s near-term trend, resulting in it trading between $11,400 and $12,000 as its bulls struggle to maintain their momentum.
The tight correlation to the dollar comes as Bitcoin also sits at the top of a multi-year macro trading range.
One analyst believes that BTC is positioned to see a strong pullback in the near-term due to a confluence of these factors.
Image Courtesy of TraderXO. Chart via TradingView.
Institutions on the CME are Overwhelmingly Short on BTC
According to the latest Commitments of Traders Report, retail investors are the longest they have ever been on Bitcoin. In contrast, institutions trading on the platform are currently going short on BTC like never seen before.
Data aggregator Unfolded spoke about this in a recent tweet, saying:
Image Courtesy of Unfolded. Chart via TradingView.
How Bitcoin and the US Dollar trend in the coming week may determine whether or not the crypto market will reverse its uptrend in the near-term.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/2FMZeoB
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