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Bitcoin Could be Coiling Up for a Move Past $11,000 Due to These Events

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  • Bitcoin’s price has been seeing an incredibly tight bout of consolidation throughout the past 24-hours, forming a $50 trading range as it stays within the mid-$10,500 region
  • This has created an air of uncertainty regarding where it may trend next, as it could easily see a swift move in either direction
  • That being said, the cryptocurrency’s ability to find stability in the face of a barrage of multiple bearish news developments is positive
  • One trader is now noting that he believes that Bitcoin’s current price action is its way of coiling up before it makes a big move past $11,000

Bitcoin and the entire crypto market have been caught within a bout of sideways trading throughout the past several days and weeks, with both sides being unable to garner any clear momentum.

This has created one of the tightest consolidation channels BTC has seen in months, which could indicate that the next movement will be massive.

That being said, one trader is noting that a continued bout of choppy trading could push funding even further into the negative zone, which will help provide fuel for bulls to spark a massive move higher.

Bitcoin Consolidates Around $10,500 as Bulls and Bears Reach an Impasse 

At the time of writing, Bitcoin is trading down marginally at its current price of $10,540. This is around where it has been trading throughout the past couple of days.

Ever since BTC dipped to lows of $10,400 earlier this week following news regarding President Trump contracting the deadly virus currently circulating throughout the globe, its consolidation channel has been narrowing.

Throughout the past 24 hours, Bitcoin has been trading between $10,500 and $10,580, with this range narrowing even further throughout the past few hours.

Analyst: These Events Could Be Pushing BTC’s Funding Lower 

While speaking about where he expects Bitcoin to trend in the days and weeks ahead, one analyst noted that its negative funding rates are a positive sign.

He also explained that fear resulting from a combination of BitMEX’s legal issues, uncertainty about the President’s health, and low investor sentiment could help push funding rates even lower.

“BitMEX legal issues – Trump got COVID19 – funding already negative. Wouldn’t it be a shame if BTC kept chopping below the CME level (blue) and made funding go even more negative and then on Monday we pump straight to 11k rekting everyone that go bearish during the weekend.”

Image Courtesy of Byzantine General. Chart via TradingView.

If this push higher does take place as he suspects, a high quantity of open short positions will act as fuel for a move significantly higher.

Featured image from Unsplash.
Charts from TradingView.





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CME overtakes OKEx as largest Bitcoin futures market

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CME Group has become the world’s largest Bitcoin (BTC) futures market following a surge in open interest over the past month, industry data shows. 

In a Friday tweet, Arcane Research announced that CME had overtaken OKEx as the world’s largest Bitcoin futures market. Citing data from Skew, a market intelligence firm, Arcane said open interest in CME’s Bitcoin futures contract has reached $1.16 billion. OKEx, meanwhile, registered $1.07 billion.

“Institutional investors are here,” Arcane said.

CME’s Bitcoin futures market has more than doubled over the past month, with more traders seeking exposure to the flagship cryptocurrency as it surged to near all-time highs. Future trading can sometimes invoke heavy volatility, especially as expiry nears, as contract holders adjust their positions before that date.

Its November futures contract, BTCX20, expires on Friday.

Cryptocurrency exchanges Binance and Huobi have also emerged as major futures players. Based on open interest, they are the third and fourth largest BTC futures platforms, respectively.

Bybit, which also appeared on Arcane’s list, announced earlier this week that it will soon launch a quarterly Bitcoin futures contract.

The futures market is an important bellwether for Bitcoin adoption because it means traditional investors are getting into the mix. Whereas the 2017 bull market was driven largely by retail traders, the current uptrend has been fueled by deeper institutional pockets.

CME, in particular, is becoming vital to Bitcoin price discovery, according to investment manager Wilshire Phoenix.

CME’s significance is “not only demonstrated through trading volume and open interest,” Wilshire said, “but also by influence on spot price formation.

The Bitcoin price is currently consolidating in the $16,500 range following a heavy Thanksgiving day selloff.