Hedge Funds Widely Flip Short on Bitcoin Despite Blatant Breakout

  • Bitcoin has been caught within the throes of an intense uptrend throughout the past few weeks
  • This has led its price to post massive gains, with bulls now vying to post a monthly close above $13,800 for the first time
  • Although this would mark the highest monthly close ever seen by BTC – which would be undeniably bullish – not everyone is convinced
  • Data from the latest Commitment of Traders report from the CME shows that hedge funds have more open short positions on Bitcoin than ever before
  • This comes as institutions, retail investors, and professional traders are flip net-long
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Bitcoin has seen some of the most bullish and exciting price action ever, with intense fundamental strength, mounting adoption rates, and a powerful technical structure all working in its favor.

It is now in the process of flipping $13,800 into support, as this was previously a strong resistance level.

It did rally as high as $14,100 overnight, but this was met with some serious selling pressure that sparked a sudden pullback.

Despite this recent movement’s overt strength, there is one group of investors that is shorter on Bitcoin than ever before – hedge funds.

This is revealed in the CME’s latest Commitment of Traders report.

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Bitcoin Sees Powerful Uptrend as It Continues Shattering Key Resistance Levels

At the time of writing, Bitcoin is trading up over 2% at its current price of $13,880. This marks a slight decline from its overnight highs of $14,100.

The crypto’s uptrend is showing no signs of slowing down anytime soon, as each selloff has done little to slow the cryptocurrency’s mid-term trend.

If it can end the day above its current price level, it will mark the highest monthly close ever seen by the cryptocurrency in its decade-long history.

CME Report Shows Hedge Fund Net-Short Positions on BTC Hit an ATH

Per the latest Commitment of Traders report put forth by data aggregated Unfolded, while institutions, professional traders, and retail traders are all net-long on Bitcoin, hedge funds have never had this much short exposure.

“27 – October CME BTC Commitments of Traders (COT) report – Open Interest: 12,665 (up +16.2%) – Hedge funds net short new all-time-high – Open interest nearing all time highs.”


Image Courtesy of Unfolded. Chart via TradingView.

These short positions could act as rocket fuel for a move higher, making them a vital piece of the next leg higher.

Featured image from Unsplash.
Charts from TradingView.

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