Bitcoin Bulls “Hanging On By Thread” While CME BTC Futures To Expire Today, What Happens Next?
Bitcoin Bulls “Hanging On By Thread” While CME BTC Futures To Expire Today
- Bitcoin back at $8,400 after going below $8,000 yesterday following the rise to $9,000
- More blood is coming, just a matter of when – crypto trader, The Cryptomist
- Bitcoin breaking down and closing below $8,193 wouldn't be good – crypto trader, Josh Rager
- The aggressive rising trendline is now broken – Mati Greenspan, senior analyst at eToro
- Waiting for CME gap to be filled, No firework expected from CME BTC futures expiration
Since hitting $9,000 very briefly and then falling below $8,000 the same day, Bitcoin has made some recovery. At the time of writing, the world’s top cryptocurrency has been trading at $8,400 with 24-hours losses of about 4 percent.
In tandem with Bitcoin, altcoins have fallen even deeper with top cryptos down by 7 to 10 percent. This has the total market cap at $262 billion that fell down from yesterday’s highest point at $286 billion to $257 billion, the lowest point of today.
Bitcoin falling is not good for even altcoins, however, if it had traded sideways as BTC did when it remained below $8,000 level, altcoins surged.
So, where will BTC go from here?
Crypto trader and analyst The Cryptomist says the bulls are hanging by a thread and though we can still push one leg up, we will find resistance at $8,490 region. She further thinks more blood is coming soon.
Meanwhile, crypto trader and investor, Josh Rager says if Bitcoin breaks down and closes below $8,114, it won’t be good for the leading cryptocurrency. However, a move above $8,330 would push BTC up for a retest of previous support.
Yesterday, we reported how eToro’s senior analyst Mati Greenspan shared that ADX, the trend strength indicator showed “very strong trend” hitting and sustaining above 50 for two weeks. In his latest update, Greenspan says this trendline is now broken.
Talking about the fall in price, he says it was a “classic bull trap” as “Too many 50x traders over @BitMEXdotcom. Need to get liqed before we can moon.” The psychological support, Greenspan explains is present at $8,000 that the flagship cryptocurrency is holding and if we fall even further, the next major support is $6,400.
Waiting For CME Gap To Be Filled
As we reported, the CME Bitcoin futures contracts, where 1 contract equals 5 BTC are expiring today.
We already know May was a big month for these contracts as the CME Bitcoin futures contracts surpassed $1 billion in notional value. According to Skew, the expiration won’t have much of an impact on BTC price as the majority of the positions have been already rolled.
As for the gap, once this gets filled, analyst FlibFlib says previous resistance to act as a support, but we can still see a shake out.