Bitcoin traders in 2019 have more than just technical analysis and blind faith to rely on when taking market positions. At the Chicago Mercantile Exchange, Bitcoin futures contracts have been enjoying considerable volume this year, and this is something worth paying attention to, particularly when the market is enjoying a bullish sentiment.
Trends in Bitcoin Values
As we head into the end of May 2019, most Bitcoin futures contracts at the CME are trading between $8,500 and $9,000. These are contracts that are calling for Bitcoin to continue riding the stable and gradual bullish wave of recent weeks. As can be expected, a few more contracts are calling for higher exchange rates up to $10,000, but two positions stand out: one just below $18,000 and the other just over that level.
The reason most BTC futures contracts are closer to $10,000 is because seasoned CME traders are more prudent and conservative than what many people perceived them to be. To this effect, there are quite a few BTC short sellers, but the presence of two trades doubling the average positions is interesting for a few reasons.
The Importance of Technical Analysis
Futures traders thrive on technical analysis, particularly when dealing with Bitcoin, a digital asset that is light on fundamentals. When these traders look at charts, they pay attention to the entire spectrum of positions; if they notice gaps, they will think about what could happen if other traders try to fill them. The gaps between $10,000 and $18,000 are hard to ignore.
Since there is a Bitcoin chart void that looks as if it needs to be filled, some futures traders are bound to consider filling it. This would certainly be speculative, but such is the world of futures contracts.
What could happen if many Bitcoin futures traders choose to fill the gaps is that a new sentiment would develop. Let’s keep in mind that many BTC traders pay attention to what happens in the CME, which means that the current rally could extend. All the same, gaps can also be filled the other way around, meaning that short sellers would try to pressure the Bitcoin futures market, but there aren’t such short selling gaps at this time.