Bitcoin analysis. Bitcoin slowly but steady growing . What will CME futures bring(#17)
Today CME futures start trading in Chicago. We must put on radar 17 and 26 January when first future contracts expire. May be that we will experience some intense activity in Bitcoin price moving.
Long term resistance line had been formed in last 5 days. Long term support line confines price from above and now new support line emerging in last 2 days and proposes steady growth. In MACD crossover had formed and shift in momentum is also spotted. This mean that some minor correction is about to happen. Price have ahead two resistance points on support line and on 23.6% Fibonacci level. Rebounce is quite possible and if the 23.6% level will be penetrated price will dive for a little into Ichimoku cloud. and almost certainly rebounce on 38.2% Fibonacci level. But we must not exclude small possibility than MACD crossover and momentum shift will prevail and price will be driven below Ichimoku cloud and some major descent will happen eventually.
As futures trading develop we must be aware of common events futures contract expiration can trigger on market price. Small group around thousand people owns over 1/3 of all Bitcoins. This whales can be also active on futures market and if they have interest to get some extra profits from future trading shorting strategy can be used for that. If whales holds short positions on futures they can drop Bitcoin price with selling pressure, collect profits on future market and with this profits buy back Bitcoins cheap. So at 17 and 26 January when first future contracts expire volatility on the spot Bitcoin market is very likely to happen.
Altcoins is in uptrend and almost all significant ones gain substantial upticks in price. DASH had made great progress and is hovering on $1k level. Also ETH is recovering after correction. My favorite is Dogecoin somewhat overlooked coin but is doing extremely well. It rises from $0.0035 to $0.0060 almost 100%. Altcoins build up market capitalization and consolidate their value in crypto world.
----------------
Previous analysis: #11, #12 , #13, #14, #15, #16. Is good to check them out to get insight into my reasoning.
Image sources: Investing.com, Data sources: Bitfinex exchange
Disclaimer: If you use my ideas and analyses in your investment ventures, you take all responsibility and consequences about your actions.
What do you think about BTC price? Comment and present your views! Great ideas emerge from good quality discussion! I'll be immensely grateful for your contribution.
And as always upvote this post and previous ones, if it have some value,follow me, if you think this content is great and I promise that it will be more interesting stuff in the future.
Let steem on, to the bright future!
This post has received gratitude of 1.00 % from @jout
Excellent analysis, and I agree, I myself never contemplated the effect of futures price expiration into my thoughts and my own analysis.. @pawsdog.. Solid catch on that...I will have to look into it resteemed.
Nice! Do you think Dogecoin still has some room to grow?
It is in the same basket as LTC but not so prominent lately. In crypto world you never know, I will monitor charts an will see how the situation will evolve.
Very well written! You definitely won a follower with this one :) Why is DOGE coin your favorite?
Nothing particular! May be just funny name. I use Dogecoin to move crypto funds around the net sometimes. It have nice blockchain performance no congestions and reasonable fees.