Led by Bitcoin, the cryptocurrency asset class is posting another strong week in June. Values are up across the board and positivity is dominating the marketplace. Bitcoin’s month-long rally is the main reason why, with values on an apparent collision course with $10,000. Can anything derail the crypto bull run of 2019?
Of course ― a wide variety of scenarios remain possible. Given the potential fallout from untimely regulation, hacking, or rumor, cryptos can be fickle beasts. However, sentiment is strong and prices are cutting into the losses sustained during the cryptocurrency winter.
Opening GAP Proves To Be Valid Support For June Bitcoin Futures
In a Live Market Update from earlier in the week, I outlined the importance of Monday’s opening GAP in June Bitcoin futures. Thus far, the near-top of the GAP at $8985 has withstood several tests. Until we see a large retracement and fill in of the $8515-$9055 area, one has to think $10,000 is going to be tested sooner rather than later.
Bottom Line: Looking at Bitcoin futures is a worthwhile exercise, even if you don’t trade them; they give us an idea of what institutional traders think about BTC in general. Right now, volumes are solid and bids are hitting the market with regularity. The bullish trend remains very much in play.
If the BTC bidding continues, a countertrend play from just beneath the $10,000 handle may set up for the near future. Until elected, I will be selling BTC on the cash markets from $9740. With an initial stop loss at $10,160, this trade produces $500 per BTC profit on the first rejection of the $10,000 psyche level.