Bitcoin Breaks Above Critical Level, Why Bulls May Be Ready to Charge

Bitcoin CME Futures BTC1 Front Month Persistent contract price action rounds off into the weekend, making Friday evening the closing bell for the week. This Friday’s close saw the price rise above a key level that has caused the crypto to rally in the past. Here’s a closer look at why bulls may be ready to charge in the coming weeks.

Using BTC CME Futures as a Crypto Crystal Ball

Not only do large institutional traders trade spot BTCUSD, nor do they trade on Binance, ByBit or any other crypto platform. When they want to speculate and trade using derivatives contracts, they look to the Chicago Mercantile Exchange, better known as cme group,

Unlike the 24/7, always-on crypto market, CME Group charts are closed for weekends and holidays like stocks. Because of this behavior, there are often gaps in the chart that do not appear on a standard BTCUSD price chart. Discrepancies between the BTC CME futures chart and the BTCUSD chart can lead to fakes and shakeouts.

As bitcoin CME futures close for the weekend on Friday, it may also provide Quick clue How can the spot price chart close on Sunday night? In this case, BTC futures have retraced the Bollinger Bands base line, often referred to as the “mid-BB”.

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Bitcoin Price Rises Above Bollinger Band Basis Line

at baseline Bollinger Bands A 20-period simple moving average. The tool’s creator, John Bollinger, then adds an upper and lower band set at two standard deviations from the SMA. This causes the bands to expand and contract with the volatility of the market.

Like any moving average, it can act as dynamic support and resistance, halting price action or preventing it from advancing further. Following this Friday’s BTC futures weekly close, bitcoin has moved back above the mid-BB, potentially confirming it as support.

In the upper part of the chart above, bitcoin is in an impulsive uptrend after holding above the baseline in 2019 and 2020. The bottom section shows a closer look at this latest weekly close. Unless there is a heavy drop before Sunday night, BTCUSD technicals should follow suit. And if history repeats, there could be a bull run.

Is Bitcoin Poised for a Strong Rally After Reclaiming Key Levels as Support? This chart was featured Issue #8 of CoinChartist (VIP) Along with a dozen other exclusive crypto charts. Click Here to find out more.