Digital Assets: Bitcoin Preparing For Explosive Upside

February 3, 2020 | Digital Assets, News

Bitcoin in bullish setup and Bakkt futures OI at an ATH

The BTCUSD daily chart above shows a very bullish setup for the cryptocurrency. When taken with the blast-off in the open interest in Bakkt’s physically-settled Bitcoin futures market, and the continuing surge in volumes of the CME cash-settled futures contract, there is every likelihood of an explosive move higher.


Here are the bullish points that emerge from the chart.

Saucer bottom formation

A bullish saucer accumulation pattern has emerged between November and end-December. By one definition, it could also qualify as a cup-and-handle pattern. At the handle, note the bullish “Three-White-Soldiers” candlestick pattern.

Trend line breakout

Price has broken above the falling trend line that has existed from June 2019.

Multiple golden crosses

The 20-day and 50-day EMAs have crossed above the 200-day EMA, indicating bullish ‘golden crosses’ in momentum (inside the circle).

These confirmatory factors are painting a bullish picture for BTCUSD.

Open Interest

A report in Cryptoslate has pointed to the build-up of massive open interest in Bakkt BTC futures. On Friday, OI jumped 114% on the previous week to an all-time high of $11.6 million, a situation that is usually indicative of incoming bullishness.

A tweet by Skew says global bitcoin futures open interest is now more than $4 billion, and up 60% since the start of the year.

As of now, the return on BTC for Q1 of 2020 is 29.04% – the best Q1 return in the last seven years, according to Skew.

CME futures volumes

Volumes in CME cash-settled futures have trended sharply higher after January 21. A build-up in volumes together with a build-up in open interest and a run-up in prices together signal bullishness.

Target Price

If BTC/USD breaks above $9,600 there is a clear chance that it can move quickly to $10,500 and thereafter to $11,000.

Related Story:   Digital Assets: Its Halving in 2020 Could Boost Bitcoin to $50,000

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”

Latest Alternative Investment News
ESG: Graham Clapp Says ESG-Focus is Creating a New Bubble
February 27, 2020     ESG and Sustainability, News

RWC Partners fund manager Graham Clapp warned that sustainable investing trends are poised to form a possible bubble in the markets. He compared it to the tech boom of the 1990s….
Hedge Fund: Whitney Tilson Pumps Berkshire Hathaway as Top Retirement Stock
February 27, 2020     Hedge Funds, News

Former hedge fund manager Whitney Tilson has called Berkshire Hathaway (NYSE: BRK.A) the to retirement stock. Tilson, who now writes for Empire Financial Research, issued a note this week praising…
Liquid Alternatives: Invesco Launches New Sterling Corporate Bond ETF With ESG

Invesco, the fund manager with $1.23 trillion in assets under management as of December 31, 2019, has launched in Europe a new, first-of-its-kind, sterling-denominated, corporate bond ETF with an ESG…
Digital Assets: The SIX Swiss Exchange Buys A Stake in Crypto Trading Platform Omniex
February 27, 2020     Digital Assets, News

SIX Swiss Exchange announced it had struck a partnership agreement last week with San Francisco-based Omniex. The financial terms of the agreement, which also includes the acquisition of a stake…

Scroll to Top