Arnaud Masset
Swissquote Bank Ltd
Many market participants expected that the introduction of Bitcoin futures trading would trigger a sharp correction, as it would be finally possible to take short positions. In fact, the opposite happened, the price soared more than 20% and returned above the $17,000 threshold. Over the last 24 hours, the price has been moving sideways between $16,200 and $17,500.
When we look at the numbers, the market’s interest for Bitcoin futures seems to be quite limited. The trading activity was quite limited at market opening on Monday. During the first hours, the average hourly volume was around 300 Bitcoin but it quickly declined as the future’s price exploded, climbing as high as $18,850. After that, trading activity declined continuously with around 50 contracts traded hourly.
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The figures suggest that investors are not keen to go short Bitcoin, which suggests that further gains are expected. Bitcoin is currently going through a period of accumulation at around $16,000-$17,000. Regarding the price outlook, we remain bullish Bitcoin and expect that the price will pick-up soon as money continue to flow into crypto-assets. It is reasonable to target the $20,000 level by year-end.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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