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Digital Currency Revolution Series: Bitcoin Shows Resistance To Bearish Streaks, 21-DMA Major Obstacle
The bearish streaks of cryptocurrency markets in the recent times now seem to have taken a halt. Today, the pioneer and world’s largest cryptocurrency, Bitcoin’s price (at Coinbase) has managed to breakout the $6.5k level briefly, rallying from $5,688 to a daily high at $6,710, but 21-DMA is capping this rally (refer daily chart).
It is confronting the deadly bearish threats of analysts by holding above the $5,400 support and currently the price continues to show growing strength in the brink of slumping equities ques.
While the current round of CME XBT BTCH20 long term contracts ends on March 27th.
The nature of futures contracts means they need to be settled on a predefined date, based on a contract. All contracts will have to be traded, or settled, by March 30th.
There is generally a fall in the trading volume of futures around expiration, which coincides with a rise in volatility and a potential short/long squeeze. These factors may be heightened by COVID-19 driven market chaos.
Bitcoin price (BTCUSD) tumbled from the highs of $10.5k levels in February to the current level of $5.2k levels and breached below psychologically important $5k mark, it is now looking to be stabilized and in fact, the price started sensing support at $4,419 levels and bouncing through the $5,500 levels confirming the mild bullish sentiment in the crypto markets. (BTCUSD) is stabilizing and began oscillating between $4k - $6k levels (refer 2nd chart).