CME Bitcoin Futures Analysis: Open Interest at ATH and Gap Filled after Halving Blimp

15 May, 2020 Updated 20 Jul, 2022

Contributor

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on X at @nivishoes or mail him at nivesh(at)coingape.com

Read full bio

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Sponsored

Win Upto $770. AD ›

Get up to $1190 Reward . AD ›

The CME Bitcoin futures market seems to be on the edge of a bearish reversal. However, the massive increase in OI and golden cross could signal a continuation of the bullish momentum.

The OI of Bitcoin Futures on CME is currently $499 million, an All-Time High. The day of the halving saw significantly high trading volumes, Nevertheless, unlike the previous highs in open interest, it does not seem to be causing a reduction in Open Interest. As Bitcoin seems to be at the cusp of a parabolic trend, the Open Interest (OI) on CME futures has already seen a 2.5 fold increase in a fortnight.

cme bitcoin fuures open interest — CME Bitcoin Futures Open Interest (Source)

Surprisingly, the high in the OI and volume seems to perfectly coinciding with the local tops on Bitcoin. On 26th June 2019 and February 14th 2020, it marked highs with a OI of $392 million and $329 million, respectively.

bitcoin future daily chart — Bitcoin Futures Daily Chart on CME (TradingView)

From the technical view, the price is currently forming at a golden cross between the 50 and 200-Day EMA (Exponential Moving Average). It also bounced from support from the 200-Day Moving Average, now at $9395.

Gap Analysis

Bitcoin [BTC] price filled the massive $1,155 gap, recorded this weekend as the price dropped after topping at $10,220 prior to halving. A reversal at the edge of the gap could signal another bearish correction below $9000.

bitcoin futures 4-hour — BTC Futures 4-Hour Chart on CME (TradingView)

The monthly Bitcoin Futures price is presently in backwardation, with the July contracts are trading below June futures. This signals a lack of FOMO in the markets despite a 140% rise from lows in March. Nevertheless, it also indicates that traders are lacking confidence in the bull run and betting on a lower price in the short to medium term.

cne bitcoin futures price quotes — Bitcoin CME Futures Price Quote

Do you think the top is in or the stage is set towards 2019 highs around $14000? Please share your views with us.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.