Cryptocurrency Derivatives Series: BTC CME Futures Price Analysis – Technicals & Trade Setup

What’s buzzing in bitcoin derivatives market: Bitcoin derivatives trading has received a multitude of interests, so is the spike in the underlying Bitcoin’s price.

Ahead of the launch of new cryptocurrency start-up, ‘Bakkt’ established by the Intercontinental Exchange (ICE), is all set to go live for bitcoin futures contracts with physically delivery facilities, we quickly run you through price analysis of CME BTC futures contracts of front-end tenors.

On the daily plotting of Bitcoin CME futures price chart, hammer pattern candlesticks have popped-up at $9,795 and $10,130 levels. These bullish patterns have shown some minor strength in the interim rallies.

Contrary to these upswings, shooting star patterns have occurred at $11,830 and $10.460 levels to nudge the bitcoin futures prices below 7 & 21-DMAs again, amid these tight swings, the minor trend forms descending channel which is bearish in nature.

The short-term rallies now appear to be slightly exhausted on the failure swings at the triangle resistance.

The prices on a weekly-terms have retraced more than 38.2% Fibonacci levels from 2019-highs to 2019-lows.

Unlike Bakkt, these CME BTC futures contracts prices are cash-settled, would usually be subject to the CME CF Bitcoin Reference Rate (BRR) for the financial benchmarks. Renowned exchanges, such as GDAX, Bitstamp, Kraken, and itBit are the constituent exchanges to provide the required data for computation of BRR.

We could foresee more downside traction at this juncture, with strong support at $9,192 - $9,359 levels, the price bounce -backs should not be panicked. Short-term traders can initiate shorts in CME BTC of September month deliveries.