Bitcoin futures have definitely been caught in a sideways channel but could continue to the downside. On our first chart we draw two lines of the highs of May 8^th and drawing one to the highs and one to lows of June 4^th. What you will notice is this expanding downward channel has contained all the opening and closing prices including todays.

Bitcoin futures are trading up $200 (2.15%) on the day but down about $300 on the week, in today’s report we will go over were we believe BTC futures will go over the next week.

Last week we spoke about the pennant formation that Bitcoin had broken out of we have that particular formation drawn in blue lines on our first chart. What is also evident on that chart is a pennant formation still in play drawn in red.

BTC Futures as of Wednesday officially broke out of the compression triangle it was caught in. Although it was not a huge move, Wednesday’s spike in volume concurs that the break to the upside may hint at an even longer extended rally in Bitcoin futures.

To answer that question let’s take a look at a sixty minute candlestick chart with our compression triangle in blue and our long term price projection as a dashed green line. Beginning at approximately 6 PM EST yesterday we got our first break above our upper resistance trend line of our compression triangle at around $9,700.

BTC futures are once again trading within the compacting range of yet another compression triangle. On a daily candlestick chart of Bitcoin futures in the CME continuous contracts (BTC #F) it is drawn out as such. Starting a line from the opening price on April 29 then connecting it to the low hit on May 26 and extending it will give you the bottom support line.

We have been somewhat surprised since mid-March by the consistency in BTC’s ascension. Not by the increased value itself, but by the timing and structured nature of the spring 2020 rally in Bitcoin.

At the moment (4:45 PM EST) bitcoin futures are trading back in the bullish trend channel that it had broken out of on Tuesday and was resistance yesterday. This also harmonizes with our 78% retracement at $9,249, which is exactly were the market closed yesterday.

After a nearly ten week climb from the bottom at $4,210 that took it to $10,000 Bitcoin futures have left the recent upward channel breaking clearly below it in trading today. The support line I am referring to (dashed red line in first chart) was touched upon nine times on the way up to $10,000.