Bitcoin Price Analysis: BTC/USD range-bound as CME’s futures option catch momentum


  • 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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Having dropped BTC/USD below $10,000, will the bears now aim for $9,500?

BTC/USD has fallen from $10,197.35 to $9,617 so far this Wednesday, going below the key $10,000 psychological level. The bears will now aim to take the price below the $9,500, but to do that, they will need to conquer ...

More Bitcoin News

Ripple Price Analysis: Ripple finds support at important Fibonacci level

All the major cryptocurrencies fell on Wednesday in the US session. The price of XRP/USD is down around 6% so far in the session. Support has been found on the trendline which confluences with ...

More Ripple News

Litecoin Price Analysis: LTC/USD falls below SMA 20 following Wednesday’s bloodbath

LTC/USD fell from $77.40 to $70.72 this Wednesday as the bears took full control of the market. The buyers were able to bring back the price up to $71.15 in the early hours of Thursday. Following this Wednesday’s bloodbath ...

More Litecoin News

EOS Price Analysis: EOS/USD dips below the $4.50-level

EOS/USD has dropped sharply from $4.59 to $4.38, going below the $4.50 psychological level in the process. While the price is still hovering above the SMA 50 and SMA 200 curves, the SMA 20 curve ...

More EOS News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC bulls brace for jump to $11,000

Bitcoin (BTC) has been growing for three weeks in a row. The first cryptocurrency hit $10,504 on Thursday - the highest level of 2020.

Read the weekly forecast

BTC

ETH

XRP