Despite facing significant volatility throughout the past few months, Bitcoin has been caught in a bout of consolidation over the past several days and weeks, as it has found itself caught within a relatively tight trading range between $9,000 and $9,500.
This period of consolidation may soon be coming to an end, however, as institutional longs at CME have just hit a fresh monthly high, which signals that major investors are anticipating further upside for the cryptocurrency in the near-term.
Bitcoin Consolidates, But Institutions Anticipate Upside in Near-Term
At the time of writing, Bitcoin is trading down just over 1% at its current price of $9,215, which marks a slight retrace from its daily highs of $9,400 that were set late yesterday just prior to the slow fall that ultimately led BTC as low as $9,100 – where it found notable support.
It is imperative to note that Bitcoin has consistently found strong buying pressure at $9,000 in the time since its massive rally that sent it from lows of $7,300 to highs of $10,600.
In the near term, it is probable that this region will continue to support Bitcoin’s price, although one analyst believes that the crypto will see further downside as the day drags on.
The Cryptomist, a popular cryptocurrency analyst on Twitter, shared this bearish sentiment in a recent tweet, explaining that a weekly close at this price level would spell trouble for crypto’s price action in the days and weeks ahead.
“$BTC: Further blood today, and close below this price before weekly confirm would confirm fakeout and bloody upcoming week!” she explained.
Despite The Cryptomist’s bearishness, it is important to note that institutional investors anticipate the markets to see further upside in the near-term, as the number of open longs at CME just hit an all-time-high.
Skew Markets – a popular analytics group – spoke about this in a recent tweet, pointing to the chart seen below that shows the amount of open long positions from institutional investors at CME.
“Institutional longs at CME – one month high. Could we see a breakout soon > 1.5k BTC?” They said while pointing to the chart seen below.
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
Although Bitcoin’s bulls and bears currently remain in a deadlock, it is highly likely that the near-term fate of the crypto will soon be elucidated.