BTC’s bull trend is set to consolidate the coin’s price as US lawmakers struggled to wrap up details of the next stimulus bill.
The anticipation of a new stimulus bill kept the bids for safe-haven assets like Bitcoin higher, with the flagship crypto trading around the $11k to $11,200 range in yesterday’s sessions.
BTC, which is currently trading at $11260, has now entered into a consolidation phase as its buyers attempt to gain greater strength after it faced a harsh rejection at $12K over the weekend.
The world’s largest cryptocurrency will likely continue to consolidate in a sideways direction as long as the US Congress deliberates the stimulus bill, with the lawmakers expected to finalize the process on Aug. 7th.
Looking ahead, the BTC price must clear the $11,500 resistance zone to continue higher, with a break above that level likely to send prices near $11,800.
On the downside, if there is a break below the $11,200 channel support, bitcoin price might decline further towards the $11,000 support level.
BTC’s Bull Trend Fails to Convince Institutional Traders
After trading within the lower-$9K zone for most of last month, a recent breakout rally sent BTC as high as $12K this past weekend.
Regardless of its evident strength, institutional traders on the CME remain net-short on BTC – betting that its value will see a sharp decline in the weeks ahead.
The latest Commitment of Traders (CoT) report from the CME shows that institutions are still net-short on Bitcoin while highlighting that retail traders remain widely net-long.
Analysts now believe that institutions remain short on Bitcoin due to the existence of multiple CME gaps below where BTC is currently trading at.
Data aggregator Unfolded released a tweet and chart that seems to explain the current situation in CME and retail platforms. They explained:
“CME $BTC Commitments of Traders Report (COT). Open Interest: 13,068 (up 41.5%). Retail net positions hit all-time-high. The smart money (institutions) remains flat net short.”
Chainlink Price Surges 12%
In the past 24 hours as per data from Coin Market Cap, Chainlink (LINK) has gained about 12% to move to 9th in crypto rankings while eclipsing Binance Coin (BNB) and Crypto.com Coin (CRO) in the process.
For the first time in its multi-year history, LINK price surpassed $9.00 on Monday to currently trade at $9.3326 as per data from TradingView.com.
This latest uptrend comes after LINK saw a strong retracement after reaching $8.94 in mid-July.