- The newly launched CME Bitcoin contracts options continue to outperform Bakkt BTC futures.
- Bitcoin is stuck between key resistance and support zones, hinting continued sideways trading.
Following the failed attempt to correct above $9,200, Bitcoin suffered a devastating correction that sent it back to the support at $8,500. While the bulls acted quickly and pushed BTC above $87,600, the upside is still capped at $8,700. Meanwhile, the price is stuck in a narrow range between $8,500 and $8,700 as bulls continue to nurse their wounds.
Bitcoin is currently exchanging hands at $8,626. The buyers are working hard to ensure the price stays above $8,600. Adding to the selling activity at $8,700 is the resistance from the 50 SMA on the 1-hour chart. A break above $8,700 could take longer than expected but when it happens, Bitcoin must be ready for more bearish action at $8,000 (100 SMA).
As long as Bitcoin stays above the support at $8,500, chances of upward movement will remain high. However, the bulls must be aware of the downward sloping RSI. In case the RSI slide further in the direction of the oversold, BTC could not only test $8,500 but also extend the bleeding to $8,400. Other key support zones to keep in mind include $8,250, $8,000 and $7,750.
BTC/USD 1-hour chart
CME Bitcoin futures options
CME Group has continued to be a key player in the crypto derivative space, although it was not the first in the market. To cement its position in the market, CME launch regulated futures options on January 13, 2020. On first day of trading CME options contracts hit highs of more than $2.3 million. Its rival Bakkt only managed to trade about $380,000 on the first day of trading. A statement by the CME chief following the launch said:
We know from experience that successful options products require a robust, liquid underlying futures market. Our CME Bitcoin futures have become one of the most liquid, listed Bitcoin derivatives products in the world over the past two years.
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