Bitcoin Recovers Above Critical Level, Why Bulls Could Be Ready To Charge

Bitcoin CME Futures BTC1 Continuous Front month contract price action closes over the weekend, making Friday evening the closing bell for the week. Friday’s close saw the price recover above a crucial level that in the past triggered a bullish rally in cryptocurrencies. Here’s a closer look at why the bulls are poised to charge in the coming weeks.

Using BTC CME futures as a crypto crystal ball

Large institutional traders don’t just trade BTCUSD, nor do they trade on Binance, ByBit, or any other crypto platform. When they want to speculate and trade using derivative contracts, they look to the Chicago Mercantile Exchange, known as the Chicago Mercantile Exchange CME Group.

Unlike the cryptocurrency market which is always on 24/7, CME Group charts are closed on weekends and holidays just like stocks. Because of this behavior, the chart often contains gaps that are not seen in standard BTCUSD price charts. Discrepancies between BTC CME Futures charts and BTCUSD charts can lead to fake shocks.

Since Bitcoin CME Futures does not stop on Friday for the weekend, it can save as well early clues As to how the spot price charts closed on Sunday night. In this case, BTC Futures has reclaimed the baseline of the Bollinger Band, which is often referred to as the “mid-BB”.

Is the third time the charm? | BTCUSD on TradingView.com

Bitcoin price is recovering above the Bollinger Band Basis line

baseline on Bollinger Bands It is a 20-period simple moving average. Then the tool’s creator, John Bollinger, adds an upper and lower band at two standard deviations to the SMA. This causes the bands to expand and contract with market volatility.

Like any moving average, it can act as dynamic support and resistance, holding back the price action or preventing it from going forward. After the weekly close of BTC futures on Friday, Bitcoin has brought the price back above the middle BB, which could confirm it as support.

At the top of the chart above, Bitcoin is on an impulsive bullish run after holding above its baseline in 2019 and 2020. The bottom part depicts a close look at this recent weekly close. Barring a massive crash before Sunday night, the Bitcoin-USD technicals should follow suit. And if history repeats itself, a run-up may follow.

Is Bitcoin ready for a strong rally higher after regaining the key level as support? This chart appeared in CoinChartist Version 8 (VIP) Along with dozens of other exclusive encryption schemes. Click here to learn more.

BitcoinBullschargeCriticalLevelReadyRecovers
Comments (0)
Add Comment