Bitcoin (BTCZ21) trading just above $ 47,000 as of this post with a volume of 16000 and range trading between $41000 TO $59000 the last few months. Pressure in Bitcoin is still from the new corona virus threat in my view. Also weighing on Bitcoin is potential FED/FOMC action and inflation issues. Near term support levels in Bitcoin futures have been tested amid the Monday low at 45,730. This comes as over 1.2 BILLION Bitcoin Ethereum and other Altcoins were shifted from different platforms to Coinbase in my opinion. Downside risk could still be prevalent, in my opinion.
Interesting chatter in the sector from the SEC and Congressional Testimony with Cryptocoin brokerage officials around the world wanting better ways to confirm transactions and transparency. It is my belief this helped push Bitcoin lower, giving the overall Cryptocoin space a push lower amid some uncertainty.
Metaverse ,Altcoins and NFT’s for gaming use or buying products and services could be strengthening the overall Cryptocoin space and many retail and institutional traders bought Altcoins during the selloff, not just Ethereum and Bitcoin.
A positive note for Bitcoin and Altcoins is the potential drive by Pension Funds, Sovereign Funds and Brokerages making Cryptocurrencies available for their clients. Analyst expectations have still not changed in my view being bullish longer term. However in the same breath they are issuing caution on volatility and potential sharp moves lower in the near term over a possible hawkish Fed into 2022. I urge everyone to please use caution on levels when you enter the futures market. Expect more of this type of movement and possible corrections as global issues come forward in my opinion.
MICRO Bitcoin futures (MBTZ21) at 47,000 as of this writing and volume of over 16000 futures contracts. This 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, and is a continuous monthly rolling contract.
Weekly Pivots MBTZ21 (12/13-12/17)
Resistance #2- 54303
Resistance #1- 51397
Pivot- 49300
Support #1- 46397
Support #2- 44303
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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