Bitcoin Edgy Ahead of Futures Expiry – Trustnodes

Bitcoin Edgy Ahead of Futures Expiry

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Bitcoin price on 5m candles, Sep 2020

It’s the last Friday of the month and that means Wall Street’s CME bitcoin futures expire tomorrow.

They’re handling significant volumes now of $570 million a day, with much of it perhaps as a hedge for stocks and the rest.

Hence its monthly closing could affect bitcoin’s price with it unclear whether it has done so already because price fell from $11,000 to $10,200 on Monday.

It has now somewhat recovered to $10,400, with this being a strong support level, so many are looking to see whether it will keep it.

Bitcoin price, Sep 2020
Bitcoin price, Sep 2020

In this very zoomed out picture, bitcoin is at a critical stage as what it does now might determine its medium trend.

We can see the story repeating last summer, and then autumn wasn’t great, but this year there has been the halvening.

As miners have complex bitcoin management strategies, the effects of the halving are probably not felt for the first few months, but they should start kicking in now this autumn.

So if this line holds, then accumulation might accelerate to break that $12,000 and head for $14,000. Otherwise if it goes the other way we may have to look at $8,000.

Dow opened up today after a day of red for Fotsie which is now recovering as well. The British chancellor is giving a budget while Powell has been assuring Congress with politicians doing all they can to maintain the economy moving.

Futures expiry moreover sometime is positive with bitcoin’s price rising, but more and more nowadays they aren’t being felt as much as they used to especially last year.

The reason is probably because every strategy has a counter strategy, with the economy now and its performance seemingly affecting bitcoin more not least because it continues to grow as a tool for international trade.

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