CME taking a Stab at the FUTURE?
For those of you not familiar with the futures market, the CME Group in Chicago were the ones that opened up shop the DAY after the December 17th, 2017 Bitcoin All-Time High near 20K. Bitcoin did not trade higher than the CME Opening day until 2 days shy of exactly 3 years on December 16th, 2020.
Regardless of what happened back then, the Futures Contracts can help paint a picture for future price action but only when we look to the contracts that are a bit further out then the current contract. With Futures, you can start buying contracts months and months – even years out. For example, the BTC Futures contract set to expire in December of 2022 is already available and only trading at a premium to spot by about 5%. If you were confident that Bitcoins price by the end of December 2022 was going to be well over 52K, then that is an option for exposure into the BTC Market.
When we see the November and December Contracts start lighting up and we are only in October, it’s time to pay attention. Especially if there is Volume supporting these contracts. It’s one thing if a few random Joes feel bullish on Bitcoin and drop a few thousand dollars. It’s an entirely different animal when you are pushing 2.3K contracts in a single day. That sums up to over $115M in a single day.
So, why is this important?
It puts pressure on the Spot Market to meet or exceed. It’s not all that common that the futures would pull out so much of a premium. This means that if buyers want the exposure then they have to keep paying up and that would, in turn, make the Spot market respond with more buying as many traders trade the futures and then take a secondary position in Spot.
To make a long story short – the Futures are calling for further upside. Now, this comes as another expectation of another ETF waits in the winds. As mentioned before, the ETF story is several years old. Every month another story. It will eventually happen, will this ETF be different from the 200 that preceded it? Maybe. Time will tell.
Let’s get back to the present day. Bitcoin did push through the upper trend yesterday and today has already given a solid retest. The next resistance comes in the form of the previous High that needs to be taken out for this potential ATH downtrend to lose it’s structure. That level is near $52,700.
Opportunity RELOAD is well underway.
There are many ALTS that are pulling pack after recent highs. Some of these can offer great returns. We already started loading up on AXS, SOL and OMG. Continuing with ALTS – we are still watching SHIB and LUNA. We spoke about these over the last few days and they continue to impress.
LUNA has pulled pack further than SHIB but has found an intermediate Support level. The push to the low 52’s is the next resistance level for us to keep an eye on.