Bitcoin Futures Bull Div Could Offer Crystal Ball Into Next Leg Up
24 September 2021 - 3:45AM
NEWSBTC
The Chicago Mercantile Exchange more commonly referred to as CME,
offers the de-facto futures contracts for Bitcoin since the end of
the last bull market. But could the forward-looking price action
also offer a potential glimpse into the future of what’s to come?
If this crystal ball works, the last leg up could be about to
begin, and it could start with a simple bullish divergence. Seeing
Into Bitcoin’s Future With CME CME is the top BTC futures exchange
for institutional traders, and often a dominant force in the
market. So dominant, that if any gaps are left behind over the
weekend on the CME chart after the trading desk goes offline, they
often get filled within the next week with a high degree of
accuracy. These sort of breakaway gaps are common with speculative
assets like Bitcoin and other cryptocurrencies. Not all such gaps
eventually get filled, but their importance is undeniable. Related
Reading | How Futures Traders Could See The Bitcoin Selloff Coming
Recently, the CME chart has begun to diverge ever so slightly from
the price action on spot exchanges, enough to take notice. Just
recently, a lack of a momentum crossover on the daily timeframe led
to a nasty fakeout while CME was offline. The bullish crossover
never existed on CME, so there was less bait for institutions to
fall for. Now, the CME futures platform could be offering a
potential future look at the next leg up. CME is showing a bullish
divergence and a potential break of momentum | Source: BTCUSDT on
TradingView.com Last Leg Of Bull Run Begins With Flag To $82,000
There is yet another divergence to be seen on the CME BTC futures
chart – a bullish divergence on the daily RSI, that closely matches
the signal that sent Bitcoin flying last September. Related Reading
| Bitcoin Golden Cross: Everything You Need To Know About The
Bullish Signal A corresponding downtrend on the LMACD – depicting
downward momentum – is waiting to be broken. If a similar breakout
of momentum is to follow, the final leg up of the bull market could
follow. This potential bull flag has a target of $82,000 | Source:
BTCUSDT on TradingView.com These signals on their own prove very
little, and divergences are only confirmed in hindsight. However,
the massive bull flag with a target of $82,000 could eventually act
as all the proof necessary. A breakout of the bull flag pattern
still could come with several retests of the top trend line, so
more sideways is possible before upside ever materializes. Of
course, given how extreme the recent selloff was and the still
lingering fear due to Evergrande, the recent bounce might not be as
bullish as crypto holders would hope. Follow @TonySpilotroBTC on
Twitter or via the TonyTradesBTC Telegram. Content
is educational and should not be considered investment
advice. Featured image from iStockPhoto, Charts from
TradingView.com
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