Cryptocurrency Derivatives Series: Bitcoin Bears Resume Again – CME BTCG20’s up for trading

Bitcoin price has continued its bearish streaks for a third consecutive day, currently trading at $7,264 levels.

Technically, BTCUSD (at Coinbase) forms gravestone doji and hanging man patterns to lead 5th consecutive month's slumps. While the minor trend holds strong support at $6,493 levels.

While CME BTC Futures price chart shows previous gap-up is now filled-in, gap-down pattern has now formed, and reckon good time to build fresh longs around $6-6.5k levels on oversold sentiments during the expiration. One can make out back-to-back hammer candles formation at 7330 and 7165 levels respectively.

Although the intraday trading sentiments of the underlying price (BTCUSD at Coinbase) suggest some buying momentum, 7DMA caps the upswings. 

Consequently, bears have nudged prices towards 7k levels (refer daily chart), while both leading and lagging indicators cushion interim bulls.

RSI and Stochastic curves show upward convergence to the previous price rallies, but for now, indecisive for swings. Same has been the case with the MACD.

CME Bitcoin futures contracts (BTCG20) lined up for trading:

A new round of quarterly Bitcoin futures contracts opens on the CME this week. BTCG20 is dropped about -$490 (i.e. 6.25%).

The new open gives traders an opportunity to enter a new contract and make a new assessment on whether they are short or long entering the end of the year period. Information around early orders is likely to determine how back-seat investors will choose to enter positions.