CME whales are reducing BTC short positions, suggesting a potential bottom

Large investors in the Chicago Mercantile Exchange (CME) Bitcoin futures market are significantly reducing their short positions, potentially signaling that the price has formed a bottom, Cointelegraph reported. Citing a report released last week by the U.S. Commodity Futures Trading Commission (CFTC), the analysis noted that the net position of BTC futures traders has shifted from approximately 1,000 contracts a month ago to -1,600 contracts recently. This shift suggests that institutional investors, such as hedge funds, may have flipped from net short to net long. Cointelegraph pointed to a similar move in April of last year, which was followed by a 70% rally for BTC. Technical indicators also suggest that selling pressure at current levels is reaching its limit. However, the report also cautioned that some analysts view this as a favorable condition rather than a definitive signal, warning that a break below key support could lead to a further decline to $40,000.