Bitcoin futures (BTC) have emerged as one of the standout performers this year, showcasing a remarkable uptrend with gains exceeding 130% year-to-date. While debates continue regarding its fundamentals, there is no denying its susceptibility to macroeconomic influences and interest rates, positioning it as a risk asset.
Bitcoins Characteristics and Recent Price Action
BTC has often been considered a "leveraged" bet on tech stocks, maintaining a notable correlation with the Nasdaq 100. A recent surge in BTC coincided with a bottom in the treasury market, with technical indicators such as the 21-day EMA crossing above the 50-day EMA.
This rally, fueled by October's Consumer Price Index (CPI) and Producer Price Index (PPI) numbers, indicated no increase in inflation. As we approach the year-end, the prospect of easier financial conditions presents a favorable outlook for Bitcoin and risk assets in general.
Major Headwinds For Bitcoin:
However, challenges lie ahead, including the Federal Reserve's summary of Economic Projections and critical job-related data releases, such as ADP Non-Farm, JOLTs, Unit Labor Cost, Avg Hourly Earnings, and Nonfarm Payrolls. The anticipated release of the Dot Plot in the Summary of Economic Projections will reveal the Fed's interest rate expectations, potentially differing significantly from market expectations and creating a volatile environment for BTC.
While Bitcoin has had an impressive year, a decisive break and close above the significant 40,000-41,275 level will be crucial for sustained momentum, as we can then make our way to the 45,000 level. With the 21-day EMA crossing above the 50-day EMA, the 21-day EMA will serve as a key benchmark for major support.
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Bitcoins Characteristics and Recent Price Action
BTC has often been considered a "leveraged" bet on tech stocks, maintaining a notable correlation with the Nasdaq 100. A recent surge in BTC coincided with a bottom in the treasury market, with technical indicators such as the 21-day EMA crossing above the 50-day EMA.
This rally, fueled by October's Consumer Price Index (CPI) and Producer Price Index (PPI) numbers, indicated no increase in inflation. As we approach the year-end, the prospect of easier financial conditions presents a favorable outlook for Bitcoin and risk assets in general.
Major Headwinds For Bitcoin:
However, challenges lie ahead, including the Federal Reserve's summary of Economic Projections and critical job-related data releases, such as ADP Non-Farm, JOLTs, Unit Labor Cost, Avg Hourly Earnings, and Nonfarm Payrolls. The anticipated release of the Dot Plot in the Summary of Economic Projections will reveal the Fed's interest rate expectations, potentially differing significantly from market expectations and creating a volatile environment for BTC.
While Bitcoin has had an impressive year, a decisive break and close above the significant 40,000-41,275 level will be crucial for sustained momentum, as we can then make our way to the 45,000 level. With the 21-day EMA crossing above the 50-day EMA, the 21-day EMA will serve as a key benchmark for major support.
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
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