Bitcoin Bottom is Here

April 13, 2018 8:20AM CDT

After a long grind down from posting a double top at $11,800 it looks like the bleeding may have stopped. In early February we saw this type of reversal off the lows where heavy volume drove the contract to double in value over the next 20 days.  I would suspect that this rally was triggered by extensive short covering by the short sellers which is typically a bull move in a bear market. However, the continued follow through today suggests that we could see another couple days of rallies and a move back up to $10,000 would mark a 61.8% retracement off of the low. If we see a breakdown below $7,000 the bull recovery would be negated and that could be the final blow to the longs, so time will tell.

Bitcoin Daily Chart

Bitcoin 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.