Bitcoin [BTC] price continues to hold above $8000. The bulls seem to accumulate strength as the percentage of long orders increases in the market. Besides, the CME futures contract price chart provides starking revelations on current support.
On the spot market, the price has failed to hold above the moving averages. The slump below the 200-Day Moving Average was significant in establishing the bearish trend in the last couple of months. On the basis of charting technicals, the bears seem in control.
Nevertheless, the price action of Bitcoin CME futures shows levels of support and resistance. Various factors are responsible for the difference in the price of Bitcoin futures and BTC on spot exchange or even derivatives exchanges.
CME futures contracts are settled monthly, whereas exchanges like BitMEX, Huobi, Binance, Okex provide a variety of contracts including perpetual with up to 100x leverage. In spite of the large markets, CME causes considerable fluctuations and movements.
In the past, the gaps due to weekend fluctuations in the price of Bitcoin has had a strong tendency to fill. Traders often wait for the price to cover the gap even if it’s going against their perceived trend. In a bull market, the bottom of the gaps acts as a buying area.
One can see that the 50-period moving average has acted as support and resistance since July 2019.
Contrary to a break below the 200-Day Moving Average on exchanges, the CME Bitcoin [BTC] futures still hasn’t broken below it yet. Moreover, we say a strong reversal from the moving average which led to a historic rise in Bitcoin. It was noted by a popular crypto trader via Twitter, Crypo Loomdart.
Nevertheless, the 200-Day and 50-Day moving average are coming close to a death cross. The resistance from the 50-Day Moving average is currently at $8750.
Still, the fundamentals around Bitcoin are about the same, rather joined by bullish developments with SEC reviewing ETF proposal and along with PayPal news.
Do you think that the 200-Day on CME will hold or it is irrelevant? Please share your views with us.
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Source: Coin Gape