Bitcoin Futures listed on the Chicago Mercantile Exchange, could form in June 2020 with a Golden cross.The bullish pattern would confirm the growing presence of institutional investors in an emerging Bitcoin market.The last Golden cross of the derivative had driven the value of its contracts to 78.5 per cent in the height.
Since the spot price of Bitcoin is lower than a resistance in the range of $10,000 to $10,500 for a signals of the derivatives market imminent outbreak scenario.
A potentially bullish technical indicator formed on the daily Chart of the Chicago Mercantile Exchange for Bitcoin Futures (it looks like, as the moving 50-day average of the Futures in June 2020 over its 200-day moving ends average rise).
Since the listing of the Bitcoin Futures on CME in December 2017, there has been this Transition only once. 17. May 2019 is formed, the so-called “Golden cross”.
His appearance resulted in the rate per contract in less than three months of 7.940 $ up to 14.170 good riddance!$. This corresponds to a jump of almost 78 percent.
Bitcoin Futures just before the confirmation of the pattern of the Golden cross | source: TradingView.com, CME
With other words: As the last Golden cross has dropped massive gains, is likely to lead to his subsequent formation to a similar upward scenario.
The missed Golden cross
On the spot markets, Bitcoin has not redeemed in the past three out of five of their Golden crosses. The crypto-currency has the bullish pattern last updated on July 18. February 2020 painted – however, it is not able to turn it into a break to the upside.
On the contrary, the rate fell in the following three weeks, more than 60 percent.
BTCUSD is forming a new, Golden cross, after the previous failed | source: TradingView.com Coinbase
On the other hand, the CME-Bitcoin-Futures had indicated that they should form in the February-March Session, a Golden cross – but they never made it.
Later, the rate per contract fell from 9.100 dollars on up to 4.250 dollars. The derivatives used by traders as a better real-time signals, the next step of the market to predict, while the spot market judged the Situation incorrectly bullish.
20. In may 2020, formed the bitcoin daily Spot Chart, another Golden cross, confirmed, however, no upward rally in the prices. Partial reason is a strict resistance range above $ 10,000, the Bitcoins will slow down upward trends.
But the formation of a similar bullish pattern on the Futures Chart, a market that is dominated by sophisticated, institutional investors, could confirm the upward trend of the spot market. The Golden cross of the CME Bitcoin Futures, however, could also signal a recovery in prices to the retail investor markets.
Existing risks on the Bitcoin markets
As already mentioned, the failed Bitcoin Futures over the period February-March to form a 50-200 MA Crossover. The two moving averages converged almost, but remained as a result of external macro-economic factors behind the expectations.
The Corona pandemic led the world’s economies were closed and investors in the safety of cash fled, which led to a devaluation of everything else.
Including the Bitcoin markets have suffered.
While such concerns are not heard, especially after the re-opening of the economies, the expense, the risks associated with a second wave of Infection, followed by sparse data on unemployment and companies win in the global market.
This should lead to a correction of the traditional assets, could investors liquidate their existing Bitcoin positions to cover the losses.