Since the CME futures has opened. There is a clear and distinct change in the behaviour of Bitcoin. We have to ask ourselves, is the CME futures a friend? or foe?
In the last bull market Bitcoin had nothing stopping it. The chart was a long sustained growth. This lead to a healthy market. Long term holders and a thriving ALT coin market. Currently, there is a slight difference. Every time Bitcoin rises on a weekend, there is a pull back come Monday because the movements on the weekend creates gaps in the chart and as per the traditional markets, gaps tend to fill.
Is the CME futures being uses as a weapon against cryptocurrency? A method of controlling and suppressing the market? This is something we have to ask ourselves.
I remember back in 2017 hearing big names in wall street voicing distain for cryptocurrency, meanwhile building infrastructure plays in the market. Any rumour of a futures deal would send the price skyrocketing. These days the futures seem to be keeping the price down to fill gaps. After touching 10,000 over the weekend, we found ourselves with a gap which filled today.
But as you can see theres more down at the 8570 to 8540 range.
So where do we go from here? This would coincide with the rising wedge pattern we are in. If the pattern plays out as per classical TA we should dip down further. But will this be a regular occurrence? Time will tell but this far the CME futures seems like it could be more of a problem then we thought going forward. With the volatile swings that bitcoin has, and in a 24/7-365 running market. The CME Futures could be used as a tool of suppression rather then progression.
Categorised in: Cryptocurrency Markets
This post was written by BlockAdvisor