On December 10 and December 17 the CBOE and CME will finally launch the long awaited Bitcoin Futures contract. This will add a new element to bitcoin changing it from a buy side only trade to having the ability to go long or short. This should bring new larger and institutional participants to the market.
Anytime a new contract gets launched you want to get a gauge of the type of movement to expect, so take a look at the average true range of the last 30 days, week, day and hour.
Last 30 days – High $18,464 – low $5,868
Week- High $18,464 – Low $10,797
Day- High $18464 – Low $14,610
And the last hour as of this writing – High $15,564 – Low $14,796
As one can see based on the wide ranges this is a volatile contract so using a stop loss order is going to paramount.
The question is, will this just be a short lived contract like single stock futures, real estate futures or binary futures, no one knows. Two pieces of advice I can offer when diving into trading this product. Remember, markets tend to fall twice as fast as they rise. This occurs when investors catch a long trending bull move and then when they see their profits start to slip a “panic” occurs and everyone runs for the exit. The second is to remember to plan your trades and trade your plan.
