It is my opinion that this week’s rally in crypto currencies like Bitcoin and Ethereum trading higher comes on a few fronts. First, the adaptation of Crypto Currencies by Central Banks specifically in New Zealand and El Salvador adds potential further validity and possible increased exposure into this space. Second, unlike China, the US Fed is not banning Crypto or undergoing a severe crackdown on mining. Thirdly, there are more nations considering in expanding into Crypto like Panama, Brazil, Mexico, Argentina, Vietnam, Ukraine, Germany, and Pakistan into their financial systems in my opinion. It is my view that if these countries adopt policies that underlay Crypto could further solidify going forward including Altcoins.
Banks are also pushed into the Crypto space because of demand internally or by clients demands to own Crypto Currencies.
The discussion within banks and funds to create an ETF are moving forward in my opinion Invesco, Galaxy Digital and Morgan Stanley are a few names with Invesco and Galaxy having filed for an ETF on Crypto backed by physical Bitcoin that follows the Bloomberg Galaxy Bitcoin. Index (BGBI). The Crypto/Altcoin market will slowly gain momentum moving higher in my opinion.
Technically, in my view a double bottom formed in Micro Bitcoin at 41000 between 9/22 and 9/30 2021. II think given the rally this week that prices could test and could potentially move to 53,500. It is my belief that the best way to mitigate the risk and participate in this market is to trade the micro Bitcoin futures. Consider Micro Bitcoin MBT futures. ($5 per tic, $2500 maintenance margin that can change without warning) offers a solid and liquid futures contract last just traded above 51000 as of this writing with current volume above 28K for the front month October 2021 futures contract (MBTV1)
Trade Ideas
Futures-N/A
Options-N/A
Risk/Reward
Futures-N/A
Options-N/A
Weekly Pivot Numbers MBTV21 (Micro Bitcoin Futures) 10/4/21-10/9/21
Resistance #2-56000
Resistance #1-53500
Pivot 48600
Support #1 42600
Support #2 41000
Peter Ori
peterori@walshtrading.com
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