Countdown To Bitcoin’s Future, CME To Launch BTC Futures
Bitcoin Gets Mainstream Acceptance
The countdown is on! Today the Chicago Mercantile Exchange, CME, announced it had received regulatory approval from the CFTC to list Bitcoin Futures. The news comes after week’s of speculation and rigorous self-certification process to ensure the contracts function properly. Along with the CME the Chicago Board of Options Exchange, CBOE, and Cantor Exchange both made similar announcements. Cantor is of course a US CFTC authorized binary options exchange.
The CME contracts are set to be listed the 18th of December and is an event likely to generate volatility in the market. They are cash settled and pegged to an exchange rate derived by the CME and its partners. Traders will not be required to physically own BTC but many who do may also choose to trade futures.
In the near term the news has BTC moving higher. Bitcoin jumped 6% on the news and has regained the $10,000 level on its way to retest the all time high near $11,200. The indicators are bullish and pointing higher consistent with higher prices and suggesting underlying strength in the market. Upside targets are $10,800 and $11,200, both of which may be surpassed in the very near term. A break above $11,200 with be bullish and bring new targets near $14,000 come into play.
The Technical Picture
Ethereum and Litecoin continue to lag Bitcoin but have shown notable activity in the last week. Ethereum surged to set a new high above $500 and is now in consolidation, preparing for a move up to retest those highs as this post is being written. Regardless, the coin is trading above the previous all time high of $400 and looking bullish. The indicators are both showing weakness in the near term ,consistent with the test of resistance, but both are convergent with the new highs in the longer term and suggest they will be tested if not surpassed. Considering that BTC has made gains in excess of 100% of the comparable high and Ethereum has moved less than 25% I’d say ETH still has a long way left to run.
Litecoin is likewise is moving higher following correction earlier in the week. The coin is lagging both BTC and ETH having only just this week reached the previous all time high. The first attempt at crossing was rejected but new support has already been established above $85 with a second attempt in the works. The indicators are both showing some near term weakness consistent with a test of support but remain bullish longer term. Both are also showing some strength through convergence with the latest highs. These convergences suggest underlying strength in the market and a high likelihood the recent highs will be retested or surpassed.
What’s driving these moves? A growing flood of money as the cryptocurrency market matures. The CME news is only the latest sign of a growing mainstream acceptance. As that acceptance grows so too will the price of Bitcoin, Litecoin and Ethereum.