Bitcoin still looking very bullish

Despite the fact that BTC has had three consecutive down days or red candles, it resembles more of a consolidation period I believe then a pivot point. One pattern I have noticed a lot in BTC recently is a tri star formation, and we see it three times so far appearing at three distinct resistance levels before breaking above them. The fact that every level of resistance that we moved above so far has held including all three major moving averages and five Fibonacci retracement levels. More so the last level it surpassed the 78% retracement at $9249 is also a fib harmonics as $9196 is the 50% retracement of a much larger data set, this gives BTC’s last breakout and its ability to never trade below this level since it crossed over late last week.

Although studies suggest that our long term trend line has and I believe will remain relevant and we may see resistance at this trend line like we did on Friday May 8th. This line however is an average price forecast so the actual price can definitely trade above or below it, but should make contact with this line every two months at least.

The CME which began offering BTC options in January has gained a lot of institutional investors and the open interest in BTC has been rising as a result of calls heavily outweighing puts. In an article by Cointelegraph, “As halving uncertainties became less of a risk, institutional investors began mounting bullish positions. Despite being more complicated then futures trading, options markets allow investors to leverage their positions without liquidation risk. Keep in mind CME displays open interest in the number of contracts. As each CME contract entails 5 BTC, the minimum trade for a $10,000 strike amounts to a $50,000 notional. This sets CME markets apart from other markets where one can trade as little as 0.10 BTC."