With the most recent drop, many have been calling for further downside based on chart technicals. However, recent data from market research firm Skew suggests institutions have taken the latest dip as an opportunity to accumulate long contracts on CME Bitcoin futures.
As the chart shows, institutional investors, including pension funds, endowments, insurance companies, mutual funds and investment managers, have driven the total long open interest back up to levels last seen in September and August, before the major liquidation at the end of September.
That being said, the current outlook based on various Bitcoin option maturity dates paints a fairly bleak picture for those calling for new all-time highs by the end of the year. The available contract data suggests that the probability of BTC being above $20,000 by December is roughly 1%.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.