CME Bitcoin Futures indicating a surge of 41% surge to close the gap, the start of April will improve Bitcoin price
The worst Bitcoin slump seems to be a thing of the past, amid weekly gains of 18.83%. With the hours remaining for this weekly close, the future of Bitcoin in the short and medium-term seems very optimistic, with the same support of the bulls. And this is evident in Open Interest hitting a low, as reported by CME Bitcoin Futures, the start of April will improve the Bitcoin price.
Source: BTC1! on TradingView
CME Bitcoin Futures COT report implies 28-41% surge in April
The Bitcoin Futures CME is showing a higher price gap at press time, $ 6345, and it ranges from $ 8,200 to $ 9,100. This means an increase of 28% to achieve the gap and a 41% increase to close the gap. This will be an excellent opportunity to go long.
The CME COT report presents the convergence of funds used and other reports after a historical divergence. The funds used generally include hedge funds and various types of money managers, including registered commodity trading advisors (CTAs), registered commodity pool operators (CPOs) or unregistered funds identified by CFTC. However, the report also includes clearing members, prospective commission traders, and foreign brokers.
The difference between leverage reports and other reports reached a peak on February 25. Total leverage positions of -2806 and 1703 reported positions were observed during peak divergence.
Since then, the difference has gradually decreased. The convergence between these two types of investments was observed on December 10, when both the positions of leverage and other reports converged to the point. This represents the bottom for prices at that time. After this point, prices begin to rise and reach their highest levels on February 13, 2020.
At press time, the total leverage position has dropped to -1038, and other reports have risen to 80. This convergence, in a way, assumes that the bottom is in, and this is the time for the rally.
With interest rates opening low, last seen in January 2019, the CME gap and convergence created a perfect storm for the next rally. The icing on this predicted cake, or rally, is the end of the first quarter for Bitcoin, a period of history steeped in red. Therefore, early April will significantly improve the price of Bitcoin.
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