Bitcoin (BTCZ21) closed last week at $53,545 with a volume of 29000 and range trading between $51,585 to a high of $59,6800. Pressure in Bitcoin in my view comes from the fear of a new corona virus variant.
Interesting talking points in the sector come in as follows. First, was news from the SEC in rejecting Wisdom Tree’s SPOT Bitcoin ETF. This comes with more concern and claims by government officials around the world wanting better ways to confirm transactions and transparency. These maybe are weighing on new buyers entering into Bitcoin giving the overall crypto coin space a corrective push lower in my opinion.
Metaverse, Altcoins, and NFT’s for gaming use or buying products and services are underscoring the overall crypto coin space and can top one trillion dollars on inflows spread across the spectrum of Crypto currencies, not just Ethereum and Bitcoin in my view. A good example was the Spiderman movie NFT with AMC Theatres for movie goers ability to get movie tickets online in advance of the release. Another example is CryptAxx, an NFT to buy custom guitars.
Second, Interesting talk in the sector also includes Goldman Sachs, JP Morgan, and Citi Group looking at new ways to create Bitcoin based loans. Fidelity is now involved in Bitcoin mining.
Generally, analyst expectations have not changed minus issuing caution on volatility and sharp moves lower in my opinion, please use caution on levels when you enter the market. Expect more of this type of movement and corrections as global issues come forward in my opinion.
MICRO Bitcoin futures (MBTZ21) also closed at $53,545 last week as well. Fridays daily volume of over 29,000 futures contracts 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 MBTV21 (12/06-12/10)
Resistance #2- 73000
Resistance #1- 60500
Pivot- 52500
Support #1- 48500
Support #2- 45000
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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