Bitcoin markets took a slide on Sunday evening December 17 about an hour after CME Group launched the company’s futures markets. Even though the beginning of the derivatives sessions were quite bullish with contracts above $20K, bitcoin’s spot markets dipped to a low of $17,925 across many exchanges.
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BTC Markets Slide Following the Introduction of CME Group’s Futures
Bitcoin markets reached an all-time high on December 17 coming close to the $20,000 price region. Many indexes reached a global average of $19,500 per BTC during the morning hours eastern standard time. Then the price either dropped below $19K or rose above that territory briefly a few times during the day. The past 24 hours have been perfect for intra-range players and day traders who play their cards right. At 8 pm, EDT bitcoin’s price suddenly dropped three legs down to a low of $17,925 per token.
CME Group contracts are quite bullish.
In contrast to the day traders profiting during the mega dip, many observers watching contracts from exchanges like Bitmex saw some margin positions get owned when the price dipped under $1000 in a flash. Bitcoin trade volume is pretty high as roughly $13Bn has passed through the hands of global exchanges. Today’s top trading was held on Bitfinex, Bithumb, GDAX, BTCC, and Bittrex. At the moment the Japanese yen has around 44 percent of the global trading share, and the USD and KRW are following behind. Funnily enough, during the mega fast dip Tether (USDT), the trading currency that claims to have a 1:1 backing of USD, has crept up to the fourth position for currencies by volume.
Looking at the charts shows bitcoin’s price took a nice hit below the belt but is rebounding nicely between $18,200-600. Order books show some stronger resistance in the $19,250 area, but it looks like bulls can wipe this dip off with ease if nothing more happens. On the back side, if bears claw weak hands once again, order books show some foundations around $18,150.
RSI shows oversold conditions on December 17.
$18,150 and $17,200 will be two key points of interest to watch. If prices drop below the lowest zone, sub-$17K prices could easily happen. The 100 Simple Moving Average (SMA) is still above the longer term 200 SMA which means the bulls can always take the reigns and head northbound. The RSI and Stochastic again show oversold conditions, and after a hefty run-up markets seemed due for a healthy correction.
Prices slide to $17,900 on December 17.
For now, traders are making quick profits and still seem to have optimism towards the idea that more all-new price highs are still underway. Others believe a much healthier price correction is due for bitcoin and all cryptocurrencies in general. Nevertheless, market prices between $18,300-18,600 right now are currently trading at the same value positions reached on December 16 for the first time.
Where do you see the price of bitcoin heading from here? Let us know in the comments below.
Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
Images via Shutterstock, CME, Bitstamp, and Bitcoin Wisdom.
Source : Bitcoin