Hello Crypto Friends!

Today i have some important knowledge to share with you on a macro time frame. 

We all know the Whales/institutions/Exhanges, whatever you want to call them, control this market.

Wouldn't it be nice to know what they are doing behind the scenes?

Well....... you can! Using an indicator!

This won't help you on a day to day basis, this is a macro long term indicator. So you can't base small time frame trades off it.

Enough talking lets see it -

Its called the COT.

The red line is the retail traders. Above the 0 line means that the average is net long on BTC.

The white line is the institutional traders. Below the 0 line means net short on BTC.

So you can see that they have been pretty much short on BTC except for a short time after the bottom at $3,150. This was where they accumulated and we saw the V shape bottom on the white line. Then when we hit the $14,000 they started to short and have not stopped. Look at the last little run up to $10,500, the price was moving up but they were stacking the shorts. 

Now whats interesting, is that currently they have suddenly reversed, and there is a massive V shape occurred on the big sell off that just occurred.

Every retail trader right now are looking for shorts, there is this huge bearish sentiment in the market. How low will BTC go, people calling for 1k, etc etc.

That's exactly what happened after the last capitulation to $3,150, everybody thought BTC would go lower and started to short the market. Which is when we got the big short squeeze and ran from $4,000 to $14,000 in a couple of months.

From a macro point of view, i'm following the institutions. I think we could see some kind of consolidation here, maybe into some kind of bullish pattern, then a sudden move higher. 

Not financial advice, read the chart yourself.

Happy Trading!