Highest weekly close on record in Bitcoin Futures

This week was a phenomenal one for the world’s number one digital currency by market cap. Speaking of market cap Bitcoin’s total market cap grew to its all-time high reaching $369 billion on December 1^st, and still sits well above $350 billion to this day. At bitcoin’s previous record high achieved exactly three years ago in December 2017 was $237 billion, after which dropped as low as $69 billion one year later in December 2018 when pricing dropped to its lowest point since futures were offered at approximately $3,000.

Realize this week’s closing price is $2,500 higher than the previous weekly record close of approximately $16,600 in the second week of CME futures Jan. 2018. This has been an amazing run for Bitcoin and other than last week’s lower close it has closed higher week after week since the end of September, which is nine out of the last ten weeks taking out three huge hurdles of resistance areas along the way.

Last week would have been the ninth consecutive higher weekly close had it not been for Friday’s sell-off of over $2,000. This was the first major loss for BTC since it went parabolic following PayPal’s announcement that users will be able to store and exchange Bitcoin on any PayPal account and application. However, this loss was not only a shallow one given the rise witnessed recently in Bitcoin. Furthermore, the recovery was swift to say the least, this likely due to a large number of GTC orders to buy BTC at various prices around $17,600 -$16,600 implemented by large scale investors. The spot markets which have been leading the futures markets in terms of price action rallied consistently over the weekend causing BTC to gap higher on Monday and they both went on Monday to reach new record highs.

Although Tuesday saw slightly higher intra-day prices it closed lower and was the start of a consolatory period that we are still currently enveloped in. This consolidation at around $19,000 is the best thing that Bitcoin could have done in my eyes as it puts the last few weeks of steep ascent to current prices back into the healthy market action category that we witnessed before Oct. 21^st. Simply put this may negate a strong pullback for now, although still very possible it does not seem as guaranteed as it did in November. Traders in the market still may be wise to pull profits here unless they are one of the many who have chosen to hodle (hold on for dear life) of which I am a big fan of. Traders not currently holding any long positions may want to wait until January to see if a pullback does occur and look for a better entry price, if you chose to follow these instructions, I would recommend buying in layers at different key levels that may get hit. My recommended entry points and amounts would be as follows, allocate 25% of your total investment to buy at $16,500, 50% to buy $13,600, and the final 25% at $12,500 if these levels do come back into play which is not out of the question.