Bitcoin CME Futures BTC1 front month perpetual contract closed over the weekend. Thus, he made Friday evening the closing bell of the week. At this close, the price broke above a key level that has led to a bullish impulse in crypto in the past. Crypto analyst Tony, nicknamed ‘The Bull’, says the bulls are ready to go on the offensive in the coming weeks. The analyst takes a closer look at the reasons for this.
Bitcoin CME futures are the crypto crystal ball!
Large institutional traders don’t just trade spot BTC/USD. They don’t just trade on Binance, ByBit or any other crypto platform either. When they want to speculate and trade using derivative contracts, they look to the Chicago Mercantile Exchange, more commonly known as the CME Group. Unlike the crypto market, which is always open 24/7, CME Group charts close for weekends and holidays, as do stocks. Due to this behavior, the chart often has gaps that are not visible on standard BTC/USD price charts. Inconsistencies between BTC CME Futures charts and BTC/USD charts can lead to fake outs and shakeouts.
Bitcoin CME Futures stop on Friday for the weekend. So it also provides early clues on how spot price charts will close on Sunday night. In this case, BTC Futures retraced the Bollinger Band baseline, often referred to as “mid-BB.”
Third time charm? | BTC/USD price chart / Source: TradingViewBTC price rebounds above Bollinger Band baseline
The baseline in Bollinger Bands is the 20-period simple moving average. The creator of the tool, as the name suggests, is John Bollinger. Bollinger then included an upper and lower band adjusted to two standard deviations of the SMA. This causes the bands to expand and contract with market volatility. Like any moving average, it can act as dynamic support and resistance. This, in turn, could hold the price action or prevent it from moving further. Following the weekly close of BTC Futures this Friday, Bitcoin climbed above the middle BB, possibly confirming as support.
At the top of the chart above, Bitcoin is entering an impulsive uptrend after holding above the baseline in 2019 and 2020. The bottom section shows a closer look at this last weekly close. Unless there is a major crash before Sunday night, BTC/USD techniques need to follow suit. And if history repeats itself, it’s possible for a bull run to follow.
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