Bitcoin Futures Traders Flipping Bullish Bias as Price Drops after Filling CME Gap

bitcoin futures cme gap
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Bitcoin Futures Traders Flipping Bullish Bias as Price Drops after Filling CME Gap

Bitcoin futures prices are skewed from the spot prices as they are settled in a later time and operate with a different setting. The CME charts are further different due the closing of the exchange during the weekend.

The bullish CME  around $8900 has been ‘just’ filled as the price makes a downturn during the same time. The next bearish Gap at CME is around $7,700.

cme bitcoin futures gap
Bitcoin Futures Daily Price Chart on CME (TradingView)

Positions on Derivatives Exchanges

In the last 24 hours, accroding to Datamish, about $30 million in longs have been liquidated at BitMEX. Nevertheless, the funding rate on the exchange is still positive.

bitmex funding rate
Bitcoin Contracts Funding and Premium Rate at Bitfinex (TradingView)

The Open Interest (OI) on Huobi has been dropping for the last couple of days. Moreover, the position of traders has a strong short inclination on the exchange as well.

Bitcoin Derivatives Position on Huobi

Similarly on Okex as well, the OI is dropping to pre-euphoric levels in crypto prices at the beginning of the year. The short inclination among it’s traders seems to be increasing with negative funding rate, dropping BTC bias and long/short ratio.

Counter-Trade at Your Risk

There is a strong evidence in history that whales have caused squeezes in the market that leads to swings in price. However, the planning every trade on countering the conventional stops and break-outs, could be dangerous.

The traders must take into account deviations and hedge their positions to act against FUD and FOMO. On the current support levels at $8200 being front-run or nuked, XC tweeted,

Absolutely wrong, they said this about 7.7 as well. Trade your charts and your levels stop worrying about what you see on CT and trying to ‘counter trade the masses’

btcusd
BTCUSD 1-Day chart on Bitstamp (TradingView)

On a daily scale on the CME chart, the price has broken below the 100-Day moving average at $8411. In case of further downturn it will look to fund support from the 50-DMA at $7750.

Do you think the prices will reverse at $8200 or form another range? Please share your views with us. 

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Bitcoin Futures Traders Flipping Bullish Bias as Price Drops after Filling CME Gap
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Bitcoin Futures Traders Flipping Bullish Bias as Price Drops after Filling CME Gap
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Bitcoin futures prices are skewed from the spot prices as they are settled in a later time and operate with a different setting. The CME charts are further different due the closing of the exchange during the weekend. 
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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

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Nivesh Rustgi 870 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

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