Although bitcoin began 2019 very resoundingly, struggled a bit in the second half of the year. But, between the long liquidation and short squeezing, bitcoin gains more than 100% In 2019.

BTCUSD has been oscillating between $6,500 - $7,800 levels from the last 2-months or so. During H1 of the year, the bitcoin price surged from the lows of $3,337 to the recent highs of $13,868 levels owing to the short squeezes and fresh long build ups during this period.

As a result, we witnessed the mammoth returns of 315 in percentage terms that too within a span of 6 months or so, refer above technical chart).

However, the bulls have not sustained the peaks at the end of June. Thereafter, bears have taken back the drivers’ seat to plunge the price the recent $6,430 levels, currently, trading at $7,141 levels. The H2 has seen the longs unfolding their positions to pave a way for bears with 53% price drops and H1 has gained about 315%, overall, bitcoin price has gained 113% in aggregate in 2019.

We reckon such price behaviour in H2 has reminded a reminiscent of 2018’s retreat event, the pioneer cryptocurrency price tumbled from $6k levels to $3k levels after consolidation phase.

Fundamentally, we see some constructive underlying news to drive bullish cryptocurrencies, be it BTC or be it ETH. Of late, the launch of new bitcoin derivatives products, like, futures and options contracts are available on the Intercontinental Exchange with the physical delivery facility in the Bakkt Warehouse.

Like, the listing of the CME futures coincided with all-time highs in bitcoin prices, and researchers at the San Francisco Fed suggested that by providing a market where bearish positions could be more readily expressed the listing of these futures contributed to the reversal of bitcoin price dynamics. In a similar vein, it may be that the listing of physically settled futures contracts (that enables some holders of physical bitcoin e.g. miners to hedge exposures) that has contributed to recent price declines, rather than the low initial volumes.

Indeed, a few months ago we noted that the true level of institutional participation was likely greater than widely used trading volume figures implied, as a number of sources suggested that only around 5% of reported trading volume aggregated across cryptocurrency exchanges was genuine.

In addition, some other constructive opinions flowing in favour of major cryptocurrencies, the new Chair of the CFTC (Commodity Futures Trading Commission) has recently said that Ether (ETH) is a commodity – hinting the room for a plethora of newly regulated derivatives products on platforms like the CBOE. There have been news of ETHUSD Futures, while CME announced Bitcoin Options, we get to see Ethereum Futures in 2020.