Support in Bitcoin Futures

January 9, 2018 11:33AM CST

The recent consolidation in bitcoin futures has provided several trading opportunities with large swings in this leading crypto currency. Traders who were long over the past couple of weeks have surely taken their blows, but it looks as if support can be found at the 13000 level. Consolidation within the 13,000 – 16,000 seems to be comfortable for buyers and sellers at the moment. Volume is slowly increasing, so we should see more activity come into play.

Slowly but surely, while we await any significant regulation news to restore bitcoin to its past graces, folks like Jamie Dimon have come out saying that “he regrets calling bitcoin a fraud and believes in the technology behind it.” Although a strong endorsement for crypto currencies as a whole (since he was speaking specifically about his confidence in blockchain), traders must still be weary of this volatile giant. We will continue to monitor the upside resistance of 16,800, while using the psychological 13,000 level as support.

Bitcoin Jan '18 Daily Candlestick Chart

bitcoin_jan18_daily_chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be 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 judgement 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.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.