Bitcoin futures disruption - a parabolic exit mirrorBTC on the daily (D) macro logarithmic with parabolic trend
What we saw in the most recent move was an unprecedented bullish exit move of +45% out of a parabolic trend ! =BUYTHENEWS - CME/CBOE futures
With the also unprecedented first time implementation of futures into crypto market itself it is entirely possible we could see a -45% mirror of this move to the downside =SELLTHENEWS
And this: While keeping the major parabolic trend further intact (parabolic violation equalized)
A significant down move at all receives credence on the futures' own -and totally new to crypto market- attribute of enabling REAL shorts over the underlying asset
CBOE
BTCUSD - Mercury Rising, path to continued highs? To those that asked me yesterday, I indicated that if we cross $11,900 (GDAX prices), that would trigger a short-term buy signal from which we could get a range projection target of at least 800 points. As I write this, we are seeing a gain of 1000 points, give or take, and now the question turns to: "how much higher can we go?".
BTC' has ignored the overbought signals across many time frames, defied the critics, and continues to barrel forward. However, as we all know, what goes up most certainly come back down. Now, no one can say with certainty that they know exactly when this could happen. These are uncharted territories and we could even push forward to 18k before any serious correction. With that said, I must caution you, my PERSONAL opinion is that the higher BTC' goes before Dec 18-31, and the faster it does so, the more likely that BTC' will be heavily shorted afterwards.
I too, stand very curious to see how the interaction of the BTC' futures markets will play out across the cryptosphere. CBOE' launches BTC' futures trading this Sunday December 10th, CME group will launch BTC' futures on Sunday December 17th (effective trade date December 18th), and BitMex is launching a very interesting product as well. For those that may not be too familiar with the concepts of high level finance, futures and swaps bring an interesting perspective to the mix, especially in this market environment. Many in the industry, with far more experience than myself, have actually mentioned the built in inconvenience to short these crypto markets, at the present moment, that the FUTURES markets will address. This will be an interesting couple of weeks ahead to say the least.
From the technical perspective, we seem to have paper thin support around the 12k mark, more support can be found at 11050, but that is not as dense as the perma bulls would like to believe. A break below that and we can head much lower. As far as the upside, I would like to see a clean break of the 13100-13300 level, with force, before calling for a short-term buy signal which takes us to 14k' or slightly above. Last but not least, normally don't do this, but I charted with the 50/200 EMAs given that I have noted that the 50 day moving average is acting as solid support if price action regresses towards that average. I have highlighted these points for reference and a potential zone where this may in fact be tested again.
The crypto markets are not like any other market we have traded in before, it is imperative that one be reactive, dynamic, and follow the clues that the market tells us, current risk levels are at an all time high, and rising. Some words to always remember: "No one has ever lost any money taking profit!" / "Take and lock in profit when you can, not when you have to!".
References:
1. CBOE' Futures details: cfe.cboe.com
2. CME Futures details: www.cmegroup.com
3. BitMex Swap details: www.bitmex.com
Comments and questions welcome below.
CBOE- Long term Channel & H&S formation Short from current price
CBOE seems came out of a channel in daily frame. In the Long term it also running within a channel, and now seems forming a head & shoulder formation.
Great moneyflow divergence, really pushing down & now below Zero. So this might be an interesting short from current price.
* Trade Criteria *
Date first found- March 7, 2017
Pattern/Why- Long term Channel & Head & shoulder formation.
Entry Target Criteria- Current price
Exit Target Criteria- $66.63
Stop Loss Criteria- $80.77
Please check back for Trade updates. (Note: Trade update is little delayed here.)
CBOE. Rising wedge.It's a consolidation pattern here.
Wave B looks finished.
Target for wave C = A = 55.30
Black Swan Risk Canary, CBOE Skew Index
Similar to VIX, the price of S&P 500 tail risk is calculated from the prices of S&P 500 out-of-the-money options. SKEW typically ranges from 100 to 150. A SKEW value of 100 means that the perceived distribution of S&P 500 log-returns is normal, and the probability of outlier returns is therefore negligible. As SKEW rises above 100, the left tail of the S&P 500 distribution acquires more weight, and the probabilities of outlier returns become more significant. One can estimate these probabilities from the value of SKEW. Since an increase in perceived tail risk increases the relative demand for low strike puts, increases in SKEW also correspond to an overall steepening of the curve of implied volatilities, familiar to option traders as the skew.