Analysis of futures reports: whales are not averse to buying at the $11,000 mark

Futures reports are a useful tool for traders to help capture sentiment among major players and complement the vision of the market situation.

An attempt to break through the $12,300 level was unsuccessful. For two weeks now we have been observing the movement of the bitcoin price towards the $11,000 mark. The upward channel has been broken, as evidenced by the chart below.

Does this mean that in the short term the price will inevitably fall to the support level of $11,000? The chart below shows the location of large limit orders for the period from 6 to 18 August. Orders were concentrated at the $ 11,000 level, which confirms the importance of this price barrier.

Let’s figure out what is happening in the camp of the major players on the CME exchange. Over the August 11-18 period, when Bitcoin rose from $11,100 to $12,300, we see a large accumulation of short positions in the Asset Managers section – 595 short positions versus 296 long positions. Indeed, after the 18th, the BTC price fell, which is favorable for holders of short positions.

During the period from 18 to 25 August, the picture changed dramatically. The vast majority of short positions were closed, but holders of long contracts continued to hold positions. Consequently, bullish sentiment prevails in the camp of Asset Managers.

It can be assumed that large players do not count on a medium-term fall in bitcoin after an unsuccessful attempt to break through the level of $12,300. Rather, the rate is on a short-term fall and further – an increase in bitcoin from the range of $11,000-11,500.

Bitfinex speculators are in no hurry to gain long positions – a downtrend is outlined in connection with the fall of bitcoin. As a rule, on Bitfinex, a set of long positions begins after the price confidently bounces off the support level. So far, quotes are smoothly moving towards the support level of $11,000.

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