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Did the CME futures expiration contribute to the BTC dump?

Market manipulation is not new within the crypto space, however, accurately predicting its occurrence is not a skill that relies on any logical methodology. FUD news can often lead to large swings in price, regardless of factual accuracy generally to the downside. Conversely, the price can also be artificially pumped off glorified news stories, without much solid backing.

As the cryptocurrency market matures in age, events often repeat and in doing so, price action mirrors prior similar occurrences. One such example is the expiration of Bitcoin Futures contracts. With the latest set of Bitcoin Futures contracts, presented by the CME set to expire today (May 31st), yesterday’s huge movement in price, could have been anticipated.

Bitcoin has been on a bullish rise for the last few months, from $3,450 in early February to a new 12-month high of $9,000 yesterday, coinciding with today’s expiration of the Futures. Looking at historical data, what followed shouldn’t have been a total surprise.

Within an hour, $9,000 sank to $8,600 and then later in the evening all the way to $8,000 before rebounding and settling just above $8,250. The next few days and of course the weekly candle closure will give us a greater insight into whether or not history will repeat itself, and the price will now continue upwards.

Prior examples of contracts expiration leading to this pattern in price action include December 2018 where the price rose to the $4,000 (another significant round number) and fell $800 to $3,200.

Similarly, before the June 2018 expiration, the price dropped from $7,750 to support just below $6,000, before a $400 rise a few days later.

Once again Bitcoin has significantly fallen just before a significant set of Bitcoin Futures expire. Investors should find solace in the potential repetition of price action, and a fresh test of $9,000.

Image licensed via Shutterstock

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