music keeps cutting out on my ipod nano 7th gen when using bluetooth

I just recently got an Ipod Nano 7th Gen and the music keeps cutting out when I use bluetooth headphones. It seems like it needs to have a line of sight or else the music will cut out. If I hold the ipod in my hands while running or keep it in my pocket, I am listening to more pauses than actual music. I practically have to hold the Ipod up to my head while running to not have it cut out on me (and that is obviously not comfortable). Is this how it should be or do I have a faulty Ipod? Is there some way that I can fix it or do I need to take it to the Apple store?