Bitcoin futures briefly dip below support
Bitcoin futures in the CME are trading fractionally lower on the day, currently down $35 or .37% at $9,340 as of 5:00 PM EST. Of realm interest today was the low that briefly breached support at $9,250 and almost touched upon the 50-day moving average, something that has not occurred since April when pricing rose above this average. Although the gap between the 50 and 200 day moving averages continues to widen currently $600 apart, we would have to see this gap breach $1000 before we can say with any certainty that we are not in a sideways market.
According to Joseph young of Cointelegraph there are four main reasons we saw pricing dip below $9,000, “Four factors are likely behind the sudden decline in the price of the top cryptocurrency by market capitalization. Namely: stocks sliding, selling pressure from miners, an extended period of low volatility, and repeated rejection of $10,000.”
One thing that can be said for certain is the volatility in Bitcoin has dropped off significantly as well as volume in Bitcoin futures. Volume fell from an average of 10,000 contracts a day in February in the CME to an average of 2,000 at present.
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