The rally in Bitcoin futures has been impressive. But, without question, the rally is showing signs of fatigue. So the question is - are we gearing up for a pullback?
Technical Outlook:
Concurrent bearish divergence and a declining volume profile is a telltale sign of an impending correction. Why? Put simply, because all of the bulls are already in the market. Meaning that no new buyers bidding up the price. As a result, long liquidation pushes price lower. An initial operative target for a correction would be filling the gap from Dec. 1st and Dec. 4th between 40,390 and 42,500. While this correction would be significant, it may be necessary to sustain the longer-term bull trend.
Check out CME Group real-time data plans available on TradingView here: www.tradingview.com/cme/
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.
Technical Outlook:
Concurrent bearish divergence and a declining volume profile is a telltale sign of an impending correction. Why? Put simply, because all of the bulls are already in the market. Meaning that no new buyers bidding up the price. As a result, long liquidation pushes price lower. An initial operative target for a correction would be filling the gap from Dec. 1st and Dec. 4th between 40,390 and 42,500. While this correction would be significant, it may be necessary to sustain the longer-term bull trend.
Check out CME Group real-time data plans available on TradingView here: www.tradingview.com/cme/
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.