Bitcoin broke its 5-month high as it broke $5600 on 23rd April 2019. The price of Bitcoin CME Futures (Symbol: BTJ19) at 14: 30 hours UTC on 24th April 2019 is $5460.
CNBC broadcaster, Dominic Chu, interviewed traders Jim Luorio and Jeff Kilburg about their views on the move and also their targets.
Traders are Bullish: Can expect a shoot above $6000
Jim Luorio is a Futures trader who acknowledges that the fact he has little knowledge of the fundamentals and the chain. However, according to his price analysis, $5500 will the support level to buy Bitcoin. He added:
“Over the last weeks was in a relatively tight consolidation period and then it’s moved out.. My target (which) I have been saying since $4000 is $6100”
He expects the target to be achieved shortly. Moreover, he also expects that it might shoot above $6000 and “do a head fake and go around.” However, he also advised a stop below $5150.
Evident Back and Fill Trading Characteristics
Another Futures trader Jeff Kilburg was “on borad” with Luorio’s analysis. Fundamentally, he suggested that buyers are looking to enter the space back. He also indicated that a shoot towards $6300, the old support level is possible, keeping the ‘back and fill’ principals in mind.
Back and fill trading it when the traders are unsure of the movements and a side-ways action on price moves back to the filling of more orders. Hence, if there is sufficient buy pressure above $5500 it might be looking at a $6300 support level again.
The trading volume on CME futures Exchange is significant and reportedly, equivalent to the trading volume of actual Bitcoin on Cryptocurrency Exchange. Bitcoin Futures is an important price level to watch out for; Traditional Exchanges are highly regulated and would be more resistant to abnormal trades and FOMO (Fear of Missing Out) reaction due to experience and regulation.
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