We’ve spotted out the sloping channel and rising wedge patterns on BTCUSD price charts on daily and intraday plotting respectively.

While the bulls break-out channel resistance, as a result, the current prices spike well above 21DMA after bullish engulfing pattern. For now, more upswings seem to be likely on bullish momentum (refer daily charts).

Whereas shooting star pops up at wedge resistance of $9759 levels to signal weakness at this juncture, consequently, the bearish pattern evidences slumps yesterday (refer 4H chart). Both leading oscillators on this timeframe signal overbought pressures, whereas trend indicators signal upswings extension.

If you reckon that the trends of this pair are puzzling, as BTC futures are available at CME which are cash-settled, the below derivatives strategy is the best suitable under such circumstances, when you hold underlying outrights but stuck-up with catch22 situations in the prevailing bearish swings.

The short hedge strategy is advocated that could be utilized by bitcoin holders at the higher levels ($10000 above levels) and sitting with losses amid the lingering bearish sentiments, CME short futures contracts render services to lock in the price of underlying BTC prices to be settled sometime in the predetermined future. Hence, the short hedge is also known as output hedge.

The short hedge involves taking up a short futures positions while owning the underlying outrights to be delivered. Should the underlying BTC price tumbles, the gain in the value of the short futures position would be able to offset the drop in revenue from the sale of the underlying.

Our currency strength indices are also indicating the same, FxWirePro's hourly BTC spot index that indicates the minor trend sentiments is flashing at 73 levels (which is bullish), while hourly USD spot index was at 71 (bullish) while articulating at 06:19 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex

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