Bitcoin futures hold above key trendline

Bitcoin futures on the CME are trading slightly higher on the day currently up $10 on the day and trading at $11,610. This docile appearance of recent actions would not be so calm on actual Bitcoin traded across many platforms. Over the weekend specifically on Sunday, Aug. 2nd the price of bitcoin had a flash of a correction when according to Cointelegraph “Bitcoin declined by more than 13% within 30 minutes on Aug. 2. The shocking short-term price action caused $1 billion worth of liquidations in futures contracts for Bitcoin (BTC)”. 

This had some analysts considered both bearish and bullish scenarios after this flash crash occurred but to me this scenario showed us just how healthy and bullish BTC still is. Now we have seen a over a week of trading in an area outside and above the descending top that capped upside potential for the entirety of BTC futures. Although a revisit to prices below $10,000 to back fill the gap created when we jumped past the descending top is possible. Every day we trade above the prior trendline (descending top) is great for the cryptocurrency. 

The most telling fact is that you wouldn’t even suspect any turmoil happened over the weekend when looking at a BTC futures chart on the CME as they only trade Monday through Friday. Prices recovered so soon after Sunday’s massive liquidation went down that by Monday morning pricing was back at levels seen prior to that brief sell off. 

I believe that the most likely movement for Bitcoin futures is sideways consolidation underneath the long term 50% retracement sitting around $11,575. The good news is once this level is taken out, we have no resistance for another $2,000.