New Cboe Report Indicates More Bearish Bitcoin Price Pressure Is Coming
Ever since Bitcoin futures were made accessible to institutional investors, there has been little interest in this trading vehicle, it seems. The most recent report by Cboe shows that most speculators are opening short positions on the Bitcoin price. This will undoubtedly lead to a lot more price volatility, which is the last thing Bitcoin needs right now.
The Bitcoin Price may go Even Lower
If there is one thing that can be said about the Bitcoin price in 2018, it is that the momentum is turning against this cryptocurrency. With prices falling by over 40% in the first quarter of 2018, things are looking anything but promising. It seems there is no improvement in sight either, although the market will have to turn around at some point.
Based on the most recent Cboe report, it seems Q2 of 2018 will not be any different in terms of bearish pressure. More specifically, the report indicates that most institutional investors are opening short positions on Bitcoin, which is not entirely surprising. We are in a bear market, after all, and with no real positive momentum in sight, there is no reason to think the Bitcoin price will improve moving forward.
At the same time, one has to take reports like these with a grain of salt. There appears to be an overall increase in interest in Bitcoin futures issued by Cboe, which can only be considered a positive development. Moreover, simply because traders favor short positions over long positions doesn’t necessarily mean the Bitcoin price will continue to decline in the future.
Even so, it goes to show that confidence in Bitcoin simply isn’t there as of right now. With all of the negative pressure we have seen in the first three months of 2018, some people are clearly losing hope. Then again, we have seen a bearish Bitcoin price cycle virtually every other year. In all previous cases, the cycle has come to an end eventually.
Whether or not that means the bottom is in sight for Bitcoin is a different matter altogether. A lot of people had expected the $7,000 level to hold, but the past few weeks showed that is no stable support level by any means. In fact, there is no clear support level for Bitcoin as of right now, although it seems we won’t go below $6,000 anytime soon.
Only time will tell how things will play out for the Bitcoin price. As of right now, there is no indication we will see a bull market in the near future, although there may be days when things start to look up. Unfortunately, most of these temporary uptrends are followed by massive corrections in short order. The Cboe report paints a worrisome picture, yet it only tells one small part of the story.
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