Chart of the Day
Charts don’t lie. A slow Thursday saw the price of BTC struggling to stay above the $55k level and turning sideways to revisit its support near $53k.
The formation of a major descending channel on the hourly chart of BTCUSD casts a ceiling at $54k, striking fear that a failed breakout may extend the decline towards $50k. Bitcoin 30-day returns have dipped to the negative region. On a brighter note, the greatest buying opportunities in previous bull cycles occurred when the returns were around -10%.
Talk of the Town
BTC exposure, in smaller doses. CME Group is hoping that the launch of micro Bitcoin futures next week will open the door to a broader customer base. CME’s optimism is far from unwarranted. According to their earnings call transcript, the Bitcoin futures offering brought in more revenue in Q1 2021 than the whole of 2020 combined. The introduction of micro futures could potentially cater to the needs of a wider array of non-crypto traders who seek BTC exposure. ICYMI: Bybit recently surpassed CME to become the second-largest Bitcoin futures trading platform by open interest.
