Digital Currency Revolution Series: Is Bitcoin Price Slump Buyable? Trading and Hedging Perspectives

BTCUSD has been oscillating in the tight range of $9k - $10k from the last couple of days. As expected, the CME BTC Futures price has filled in the gap that was established during last week’s vigorous rallies. 

Well, it was a constructive week for both BTC price as well as for the Bakkt derivatives platform with October 25th seeing Bakkt futures trading a record 1,179 contracts in one day. 

While year-2018 has shown the price plunge from its all-time highs of $19,893 (during December 2017), the pair was tumbled down to $3,131, it finally found a spark out of the 15-month ‘crypto-winter' bear market in April 2019.

After surging over $10,000+ on to a year-high of  $13,387 in last June, the pioneer cryptocurrency has now been able to weather the doom and gloom storm by staying afloat hovering around the $9,000-$10,000 range to-date. But aggressive and curious crypto-enthusiasts are keen on to understand where is it (BTC) heading towards?

Most importantly, Both CME and BAKKT has also announced it would be launching an options product in Q1’2020 and in December respectively.

Technically, the BTCUSD (at Coinbase) looks good at this juncture to build fresh longs as the it is all set to take off to $20k mark. Hammer occurs at the strong support zone, consequently, the price has risen above 7 & 21-SMAs with bullish crossovers. While MACD has jumped above the equilibrium levels to substantiate the buying interests.

Hence, for the long-term investors, any dips in BTC price are perceived as the good buying opportunities in this accumulation phase. Before it breaks-out and fly away, it is good to buy at current levels for the short-term target up to $10k again, even if you keep a stop loss at $8,938 level, one would attain attractive risk-reward ratio in this trade (spot reference: $9,284).

Overall, one hedging grounds, as we could foresee upside traction in the underlying price of BTCUSD, long hedges were already advised in our recent posts. With a view of arresting upside risks we wish uphold the longs in CME BTC Futures of November’2019 month deliveries.