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Bitcoin Bounce-Back Above $10k And Extends Bullish Streaks On Fed Chief Powell’s Stances Of CBDC
Federal Reserve Chief Powell acknowledged the essentiality for the privacy, and crypto transactions through native digital currency, that in turn stimulates the bullish sentiments among the cryptocurrency industry.
On the back of this news, Bitcoin (BTC) surged with a resounding rally of almost close 5.48%, currently trading above $10k level, while Ethereum (ETH) rose to $249 or more than 12%, Ripple (XRP) and Litecoin (LTC) rallied 6% & 7% respectively.
Yesterday, he stated while testifying before the US Congress (the House Financial Services Committee), that “we’re working hard on it, we have a lot of projects going on, lots of efforts going on right now.” He admitted that Facebook’s announcement to launch its own digital currency, Libra, has really motivated the Federal Reserve to step up its efforts to develop its own digital currency in the United States.
Technically, we wish to reiterate range resistance breakout upon engulfing patterns.
Consequently, bulls take-off well above 7, 21 & 100-DMAs with bullish crossovers to hit 3-months highs and is now on the verge of 4-months highs upon saucer pattern as both leading & lagging oscillators are well in line with the uptrend.
Accordingly, we advocated long hedges & trading strategies using CME BTC Futures of March deliveries as we had foreseen the upside risks in the underlying security price upfront up to the retest of $13k mark again, though the bearish pattern candles popped-up in between in the minor uptrend coupled with the overbought pressures signalled by the momentum oscillators, we still perceive this as a better entry levels provided by the bears for fresh trades at this juncture.
Hence, upholding the above strategy is wise thing to do by rolling over CME BTC Futures contracts of March deliveries on both hedging and trading grounds. Please be noted that on a fresh long build-up (rising price) coupled with the rising open interest and rising volumes is conducive factor from the contract holders’ perspectives.