FxWirePro: A Bird’s-Eye View on Bitcoins Trend Ahead of CBOE’s XBT Expiry

This Wednesday the latest round of CBOE XBT futures ends. The nature of futures contracts means they need to be settled on a set, predefined date, based on a contract. 

Please be noted that the underlying price of Bitcoin (BTCUSD at Gemini) closed the week at $3,650 levels (up about +6.9%). The test of strong support at $3,324.63 levels, which propped-up the price up above 7 & 21-DMAs and a tweezer bottom.

Bullish engulfing occurrence at $3,622.59 levels has taken off rallies above DMAs with bullish DMA and MACD crossovers after the test of this strong support, while both technical indicators are in line with the upswings, which demonstrates a strong rejection by the bulls after the bulls found support late on Friday.

All CBOE contracts will have to be traded, or settled, before this date. There is generally a fall in the trading volume of futures around expiration dates, that coincides with a rise in volatility and potential short/long squeezing.

Please also be informed that XBT futures are cash-settled contracts based on the Gemini's auction price for bitcoin, denominated in U.S. dollars. Courtesy: TradingView.com & BNC

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 89 levels (which is bullish), USD at 126 (highly bullish), while articulating (at 14:28 GMT).

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex