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Cryptocurrency Derivatives Series: Hedge Funds Remain Laggards Despite Bitcoin Rallies, Traders Candid for BTC Derivatives

Of late, Bitcoin futures contracts at CME are screaming with the upside momentum vigorously due to the rapid spike in the underlying price of bitcoin that has shown upward moves more than a thrice from its recent lows of its bearish rout during 2018, and hit fresh 2019 highs and surpassed the psychological resistance of $10k mark.

For now, it is well on the verge of reclaiming its previous all-time high of $20,000 with intensified buying momentum as signaled by both the leading indicators (RSI and Fast stochastic curves).

Amid this massive journey of bullish streaks, hedge funds seem to have been laggards and likely to be paralyzed as BTCUSD’s current parabolic spike through $12k mark, as per the most recent CFTC Commitment of Trader’s (COT) report, it’s observed that shorts are still prevalent. 

Whereas, when we look at the technical charts of CME BTC futures of front-end month contracts, having risen so sharply and swiftly, one can easily make out that the pioneer cryptocurrency has created considerable gaps quite often if you plot the technical charts of CME’s Bitcoin Futures contracts of near month deliveries. It is nothing new but owing to the short squeeze trading activities. 

Because it is quite natural in any derivatives market and nothing to be panicked, a short squeezing scenario occurs during a circumstance in which the underlying security reverses the trend and moves considerably higher to give severely shorted-side a trade paralysis.

On the back of developments taking place in the recent past, speculative commentaries keep on mounting and revolving around this space, quite a few crypto-analysts have been anticipating many bullish targets that BTC likely to hit $25k, $50k, $100,000 and so on.

Mr.Peter Brandt, who is supposed to be a veteran trader was in the news for terming Bitcoin’s big slump in January of 2018, has now taken aback from his previous stance and calls BTC is likely to shoot up for $100,000 mark.

There have been traces of the renowned cryptocurrency exchange, Bitfinex CTO Paolo Ardoino’s remarks of the maximum leverage for the exchange’s upcoming derivatives trading are also luring among the shrewd trading community. 

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 105 levels (which is highly bullish), USD is at 39 (mildly bullish), while articulating (at 12:50 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex

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July 2 15:00 UTC Released

DKCurrency Reserves

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449.6 Stale

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451.7 Stale

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50 %

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48.6 %

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-1541 %

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2016 bln ARS

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Bln AR bln ARS

January 22 19:00 UTC 776464776464m

ARTrade Balance

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-1541 %

January 31 00:00 UTC 764644764644m

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2016 bln ARS

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Bln AR bln ARS

January 31 00:00 UTC 764644764644m

ARAnnual Primary Balance*

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2016 bln ARS

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Bln AR bln ARS

January 31 00:00 UTC 764644764644m

ARAnnual Primary Balance*

Actual

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2016 bln ARS

Previous

Bln AR bln ARS

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