Micro Bitcoin futures (MBTX21) recently passed the 66,500 level before pulling back on end of week and month profit taking to close the week and month at 63,010. Recent rallies that pushed the Micro above the 60K threshold comes potentially from investor demand. This demand in my opinion is seen from new ETFs entering the expanding crypto futures sector by Valkyrie, Grayscale and the WisdomTree commodity ETF. In my view aiding the rally was news that El Salvador bought 420 more Bitcoin on October 27th for a total of 1,120 Bitcoin now amassed for the country. MicroStrategy, a business intelligence company and one of the largest institutional holders, bought an additional 9000 Bitcoin last quarter for an approximate total holding of 114000 Bitcoin. Bitcoin could still potentially make an eventual move to $75,000 and higher in my opinion.
With talk and noise of a rally that pushes Bitcoin to a target of $100,000 by Bitcoin analysts by year end. Be careful of the noise.
MICRO Bitcoin futures (MBTX21) are trading just over 61K as of this writing with volume of over 17,000 futures contracts. It is my opinion that the micro futures contract allows for good leverage in the market in my opinion. The MICRO Bitcoin futures (MBTX21) are trading just over 61K as of this writing with volume of over 17,000 futures contracts. It is my opinion that the micro futures contract allows for good leverage in the market in my opinion. The micro contracts minimum tick value is ($5 per tick), with a $2500 maintenance margin. That margin and can change without warning by the CME Group, and is a continuous monthly rolling contract. I think given the chart provided that if the market makes new highs, I look a potential test for this market to hit the upper trendline in the Micro Bitcoin futures in the 69,000 area. Major support is at 56000 in my opinion. (See Chart). A close under and the 39,000 level could be re-tested in my view.
Weekly Pivots MBTX21 (11/1/21-11/5/21)
Resistance#2- 68,203
Resistance #1- 65,606
Pivot- 61,968
Support#1- 59,371
Support#2- 55,733
Trade Ideas
Futures-N/A
Options-N/A
Risk/Reward
Futures-N/A
Options-N/A
Peter Ori
peterori@walshtrading.com
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