A confirmed break from these lines of confluence can indicate a longer trend for Bitcoin.

Coupled with earlier analysis of head-and-shoulders pattern, one could assume that BTCUSD will succumb to bearish pressure and go lower.

There are other issues with Bitcoin, such as increasing transaction costs (currently completely unusable for any micropayments), network congestion, and disagreements as to further development, which seem to have a negative impact on the price.

On the other hand, Bitcoin future contracts will soon expire and overall, ‘the experiment’ has been semi-successful, but good enough to be accepted by Wall Street.

Note. This post is for educational and entertainment use only and it is not an invitation to trade. Trading involves high risk to your capital.

Before the opening of the new futures contracts on the CME Exchange, Bitcoin price dropped below $18,000 but is now recovering some of those losses and currently hovers near $19,000 trying to push higher.

There is presently a nice bullish pin bar forming on the BTCUSD D1 chart (Bitstamp) but it’s too early to tell where it will close.

Recalling the dip in price of Bitcoin before new futures were traded on the CBOE, shows us that a similar pattern is most likely developing here with the introduction of Bitcoin futures on CME.

Bitcoin futures contracts allow investors to get exposure to Bitcoin without having to actually own any or worry about its storage or security.

Since the CME exchange is much bigger than the CBOE we might see the price of Bitcoin being pushed to new levels.

Institutional traders are currently not allowed to buy Bitcoin as it is still unregulated. However, they are allowed to buy futures contracts. 

Volumes are going to slowly increase as professional traders get comfortable with the price action and more importantly get comfortable with the volatility. – Matt Osborne, chief investment officer of Altegris

Some traders anticipate a bigger Bitcoin correction very soon, but many also agree that it won’t happen until it BTCUSD reaches $25,000.

But if a lot of money is invested in Futures short contracts (contracts which bet on the lower price of Bitcoin in the future), that can expose Bitcoin’s volatility soon.

Note. This post is for educational and entertainment use only and it is not an invitation to trade. Trading involves high risk to your capital.

The current demand for Bitcoin trading and ownership is so great, that it is pushing the prices to new highs.

The downside of such incredible demand is network congestion which results in delayed transactions and slightly higher costs.

In addition, a few platforms offering Bitcoin trading have informed users  that they will put limits on Bitcoin trading this weekend due to exponentially rising demand and not enough resources.

Earlier this week, when first Bitcoin Futures were offered on CBOE exchange in Chicago the demand for new Bitcoin contracts was so great that the traffic temporarily crashed the network.

If this bull run continues we could see the price of Bitcoin reach $20,000 before the end of this week, and not at the end of this year as I have suggested in my previous post.

Note. This post is for educational and entertainment use only and it is not an invitation to trade. Trading involves high risk to your capital.