It may be too late to buy Bitcoin and too early to sell
The COT bitcoin report data reflects an increase in bullish sentiment among hedgers and small speculators. Longer-term hedgers are increasing their net position on BTC growth for the second week.
Small speculators after a one-week break also continued to build up a net position on the rise of cryptocurrency, but this group of traders usually does not have a significant impact on the market.
Large speculators, after the one-month expiration of the futures, cautiously increased both buying and selling, which did not change the net position on bitcoin decline. The net position has been almost unchanged for two weeks, reflecting some uncertainty in the sentiment of the main group of bidders (when it may be too late to buy and too early to sell).
COT reports data are fundamental and are used mainly for medium and long term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually trade along the trend (blue line). Small speculators, NONREPORTABLE POSITIONS - usually have little influence on the market (red line). HEDGERS, COMMERCIAL (operators, large companies) trade usually against the trend (black line). Net position is the difference between the number of buy and sell contracts. Open Interest is the sum of all open positions in the market.