Suddenly in the $3500 range stable? Because the Chicago bitcoin futures contracts will expire

After the encryption of money market recently experienced a series of high volatility, bitcoin prices from this Tuesday (November 27th) began to show some signs of bottoming out, the sideways has come to a little more than $3500 psychological support.

At the time of this writing, bitcoin price is about $3734, compared with the previous day’s closing price rose 1.58%. You know, in the past two weeks, $BTC/USD transactions on growth (or decline) has been no more than $230. Although the “$230” in any other financial market is a relatively large fluctuations, but compared with the bitcoin price performance over the past few weeks, the current price trend is relatively stable.

So, why bitcoin market “suddenly” showing a rising trend?

In fact, one of the important reasons is that the Chicago Mercantile Exchange (CME) bitcoin futures contracts will be in this week (11 30) expires. Market analysis firm Fundstrat founder Tom Li Wall Street (Tom Lee) encryption had pointed out earlier, when bitcoin futures contract expires, the volatility of the stock market will always increase. The usual “routine”, prices fell, and then find the support, and in the futures expiration date shortly after the rise again – if according to this rhythm, even if not affected by any futures contract, the rebound in prices is expected before the BTC/USD will once again test the new support, may be in the $3000-3500 price range.

On the other hand, the United States President Trump Donald threatened to Chinese improve trade tariffs to stimulate the dollar rise, and a record of nearly two weeks since the high price. At the same time, the dollar market trend has attracted more and more investors to hold dollars, avoid their holdings of stocks, commodities, futures and other financial asset losses due to exchange rate – of course, including encryption currency.

At this stage, bitcoin pressure has been maintained at around $3500, the lowest that seems to be the current market bullish “”. Interestingly, BTC/USD trading had already in the downlink channel, and now, with the Chicago Mercantile Exchange bitcoin futures contracts will expire, the market has begun to rise in the downlink and contest of both the same “strong” trend. However, when the general bearish may make bitcoin test again downlink channel support, will once again break resistance rebound. In this case, BTC/USD transactions on the downside will be to test support and continued to fall, looking for the next support — may be $3000.

Not only that, the relative strength index (RSI) momentum indicators also showed the bearish trend (actually reversed 45 points), indicating that the market appeared “selling” mood. In addition, the similarities and differences of the moving average (MACD) in the region is slightly bullish, but it seems that there will soon be reversed.

(Note: the relative strength index futures trading is one of the commonly used indicators, mainly used to guide the stock market investment effect; similarities and differences of the moving average and double moving average is basically the same, namely fast and slow moving average of the discrete, current status and characterization of polymerization of long and short stock may change and development trend, but more reading convenient. When MACD from negative to positive, is a buy signal. When MACD from positive to negative, is a sell signal)

In the short term, the market trend of BTC/USD trading in symmetrical triangle, which means that for short term traders can quickly exit or entry, and in order to get more attractive profits.

In fact, bitcoin futures will more or less affect bitcoin prices, but the impact of how much it seems also can make nothing of it. On the other hand, bitcoin prices may also be affected by other factors, such as the global regulatory agencies to review, the measures taken by the tax authorities and other encryption currency rise, and even the media attitude.

Anyway, the Chicago Mercantile Exchange bitcoin futures contracts will be on Friday (November 30th) due, bitcoin prices will therefore rise or fall? Let us wait and see.

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