A glimpse at CME bitcoin futures as no traces of recovery in underlying asset

As flurry of bearish streaks in cryptocurrencies has halted for today, but earlier BTCUSD tumbled to fresh 13-month lows at $3,760, while ETHUSD showed slumps upto $104.80 levels as the bearish momentum is intensified in both trends (as shown in the above technical charts), prolonging a continuous selloff that wiped-off almost $75 billion off the collective market cap.

We’ve been watching out the steep price slumps of cryptocurrencies very meticulously, with BTCUSD tumbles 40.95% in this month, ETHUSD slides 47.17%, while BCHUSD shows 60.29% dips. At this juncture, many analysts reckon that crypto-avenues are predominantly impelled by speculative investment from small investors who either select start-ups based on the potential of their technology or simply because they trust that the digital assets with eventually appreciate in value.

The current round of CME monthly Bitcoin Futures trading, has its last trading day on Friday. This would be the last chance for futures contracts to be traded or square off, and post this date outstanding contracts need to settled by cash as per original specifications.

In November, there were over 5000 XBT contracts traded, each worth 5 BTC. This equals close to $100 million. The days surrounding futures expiration are always prone to unusual price activity with scenarios like long squeezing, tending to exaggerate movements. 

The high volumes on CME markets this month will add to any potential price volatility. Courtesy: BNC

Currency Strength Index: FxWirePro's hourly BTC spot index is showing -146 (which is bearish), while USD is flashing at 93 (which is bullish), while articulating at (12:04 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex