Bitcoin [BTC] Drops Violently on CME Expiry for March, BitMEX Traders Remain Bearish

bitcoin halving bullish peter brandt
Image Source: Shutterstock

Bitcoin [BTC] Drops Violently on CME Expiry for March, BitMEX Traders Remain Bearish

Bitcoin [BTC] drops by 9.1% as it breaks below critical support from the $6400-$6800 range. BTC price at 3: 30 hours UTC on 28th March 2020 is $6180.

Co-incidentally, the drop occurred in the hour following CME closing around 17: 00 hours CT time. The 1-hour chart on Coinbase shows how the price dropped by $300 (4.5%) just after expiration of monthly closing for March.

btcusd coinbase cme drop
BTC/USD 1-Hour Chart on Coinbase (TradingView)

The futures market was largely in backwardation (lower prices into the future) since the drop on March 13. Presently, the prices are beginning to reach parity with the future months; the closing yesterday suggests neutral sentiments.

btc cme closing
Bitcoin Futures CME Price on Friday Closing

The CME contract expiry on 27th March yields negative prices suggesting that the traders likely closed short positions causing a sell-off.

Bearish Sentiments

The lower-time frames are particularly bearish, as uncertainty continues to linger on the overall markets. Tyler Jenk’s Lucid SAR indicator along with the break-out from the ascending triangle sounds alarm for further bearish moves. Prominent derivatives’ and crypto traders, XC, tweeted,

Multiple day range breakout here, if you’re bullish on $BTC you should be praying for a quick V back above the mid 65 lows. If not MS (Market Structure) is clearly flipped bearish on the LTF (Lower Time Frame) charts

Moreover, the resistance from the Lucid SAR is at $696x.

btcusd coinbase
BTC/USD 4-Hour Chart on Coinbase (TradingView)

Moreover, the funding rate on BitMEX is plummeting towards the short-side, which creates an opportunity for whales to play long.

bitmex funding rate
BitMEX Funding Rate Indicator (TradingView)

As reported yesterday on CoinGape, the markets are seeing a shift of dominance from the derivatives exchanges to stop markets. This liquidity indicator on Coinbase, suggests that the buy and sell side seems to be balancing contrary to the times before the fall.

Do you think that the price will hold support above $6000 or will bears push it to swing lows? Please share your views with us. 

Summary
Bitcoin [BTC] Drops Violently on CME Expiry for March, BitMEX Traders Remain Bearish
Article Name
Bitcoin [BTC] Drops Violently on CME Expiry for March, BitMEX Traders Remain Bearish
Description
Bitcoin [BTC] drops by 9.1% as the breaks below critical support from the $6430 range. BTC price at 3: 30 hours UTC on 28th March 2020 is $6180.
Author
Publisher Name
CoinGape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: Nivesh Rustgi

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 Twitter at @nivishoes or mail him at nivesh(at)coingape.com

Post your comment...
Nivesh Rustgi 1033 Articles

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 Twitter at @nivishoes or mail him at nivesh(at)coingape.com

Follow Nivesh @