After an amazing run to almost $17,000 Bitcoin price retreats to $13,000 just before Bitcoin Futures open trading this Sunday.
Based on the last three days of trading, we can see that there is a clear support level near $13,000.
Bitcoin may still go much lower, as this level is only based on the last three days.
On the other hand, the Bitcoin momentum may continue and the start of Futures trading may propel Bitcoin to new heights.
Most traders expected a proper correction when Bitcoin was reaching the level of $10,000 ,but the price just kept going up. This is the first correction as traders brace for Bitcoin futures.
Bitcoin Futures is a very big deal and a new milestone for the adoption of digital currency.
Being added to the Cboe Global Markets, the Chicago-based exchange means that investors will now be able to bet on the future price of Bitcoin, without having to buy or own the currency.
It also means that Bitcoin will see a new level of participation by the Wall Street, aka. the big whales.
There is a potential downside which many Bitcoin traders fear, namely that with the introduction of Bitcoin futures, traders will be able to bet huge amounts of money against the digital currency and force its price back to much lower levels.
As one analyst put it metaphorically:
‘These whales make the biggest Bitcoin investors look like little goldfish’
However, the big upside of Bitcoin futures could be a much wider adoption and acceptance and more money put into digital currencies as a whole.
It could also mean the price of Bitcoin will skyrocket to new levels.
Bitcoin futures start this Sunday at 5pm at the Chicago-based exchange.
More exchanges are to follow with Bitcoin futures trading in the next few months.
Let’s see what happens.
Note. This posts is for educational and entertainment use only and it is not an invitation to trade. Trading involves high risk to your capital.
To learn more about bitcoin futures trading read this article