Bright Futures: Bitcoin Climbs on CME News, But Is $7,000 in Sight?

Discussion in 'Crypto Currency Discussion' started by vijayrocker13, Nov 2, 2017.

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  1. vijayrocker13

    vijayrocker13 Active Member

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    Bitcoin has once again smashed expectations.

    The largest cryptocurrency by total value hit You must be registered for see links on CoinDesk's Bitcoin Price Index (You must be registered for see links) this morning, with prices reaching $6,600 at 11:00 UTC. At the time of writing, the bitcoin-U.S. dollar (You must be registered for see links) exchange rate has dropped somewhat to $6,498, but that said, BTC is up 3.76 percent in the last 24 hours.

    The move follows the news U.S.-based derivatives marketplace operator CME Group You must be registered for see links bitcoin futures later this year, a notable announcement as it perhaps opens new doors for the world's yield-hungry institutional investors.

    The You must be registered for see links has intensified over the last couple of years, courtesy of record low interest rates across the developed world. So, if it comes to fruition, which largely depends upon U.S. regulators, CME's decision could end up creating a rival for equities.




    As cited by You must be registered for see links, the listing on the CME offers the following benefits: firstly, liquidity could increase with high-frequency traders acting as market makers, and, secondly, traders would be able to hedge cash positions in the digital money

    So far, the numbers speak for themselves: bitcoin is up more than 500 percent on a year-to-date basis, and price action analysis suggests a potential for a rally above $7,000.

    Daily chart
    [​IMG]

    The above chart shows:

    • Rally ran out of steam at the rising channel ceiling (upper end of the rising channel).
    • The daily relative strength index is overbought, but still well below the highs seen mid-October.
    • On the higher side, $7,076 (127.2% Fibonacci extension) is the level to watch out for.
    View
    • A break above the rising channel ceiling would open doors for $7,000 (psychological resistance) and $7,076 (127.2% Fibonacci extension).
    • A technical correction is always a possibility after a rally of such epic proportions.
    • Only an end-of-day close below the rising channel support (seen today at $5,690) would signal a short-term bullish-to-bearish trend change.
     
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