BTC1! Surprisingly, the price of bitcoin and bitcoin futures have held up well compared to stocks given that Bitcoin is a high risk, highly volatile crypto currency.
It is almost as if hedge funds, and other investors have not had to liquidate their BTC exposure due to margin calls.
Open Interest has been stable and average daily volume is holding up. This can be viewed by accessing the CME Bitcoin Open Interest and Volume.
What is next for Bitcoin futures?
As noted in our analysis, CME bitcoin futures are currently trading below the key level 2024 mid-range.
Key Levels:
2024 Mid-Range, Key LIS: 79655
2024 till YTD CVPOC: 71705
Support Zone: 63140 - 57275
2024 till YT CVAL: 57275
Scenario 1: Further Downside - technical breakdown
We expect further downside and move towards our support zone marked on the chart. Enter short on a pull back towards mid-range with stops above high of Apr 3rd, 2025.
Example Trade 1:
• Short Entry: 79000
• Stop: 85240
• Target: 60000
• Risk: 6240
• Reward: 22000
• Risk/Reward Ratio: ~ 3R
Scenario 2: Reclaim mid-range and consolidate
In this scenario, if the price gets back above 2024 mid-range and stays above, we expect the price to range between 90K to 80K.
Example Trade 2:
• Long Entry: 80000
• Stop: 74630
• Target: 89000
• Risk: 5370
• Reward: 9000
• Risk/Reward Ratio: ~ 1.68 R
Important Notes:
• These are example trade ideas not intended to be a recommendation to trade, and traders are encouraged to do their own analysis and preparation before entering any positions.
• Stop losses are not guaranteed to trigger at specified levels, and actual losses may exceed predetermined stop levels.
• NFA does not have regulatory oversight over spot cryptocurrencies or virtual currencies derivatives traded on unregulated/decentralized exchanges.
Glossary Index for all technical terms used:
YTD: Year to Date
LIS: Line in Sand
CVPOC: Composite Volume Point of Control
CVAL: Composite Value Area Low
Green Zones: Bull/ Buyers support zones
EdgeClear
P: 773.832.8320 | TF: 844-TRADE20
Derivatives trading involves a substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. The views expressed are opinions, not financial advice.
P: 773.832.8320 | TF: 844-TRADE20
Derivatives trading involves a substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. The views expressed are opinions, not financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.