Bitcoin futures crashed almost $40 dollars from their highs reached yesterday. The closer to expiration October 30th contract peaked at $309.14 dollars, then fell to a low of $284 flat before recovering somewhat. It’s currently quoted at $292.11. While the declines seen in this contract were large, the far-out December 25th issue managed to top them. Here prices hit a high of $327.57 yesterday, followed by a crash to $287.68 dollars per coin. This contract is currently quoted at $299.36 dollars.
You can see an hourly chart of the Dec25 issue on the picture above. It’s taken from TradingView, a popular web-based charting platform. The symbol is ”BTCUSD3M” without the quotes. This will give you several bitcoin exchanges that offer quarterly contracts, among which is OKCoin.
But while futures crashed, trading on spot exchanges was lot less volatile. For example on BTC-E we peaked at $288.90 yesterday, then declined to a low of $274.05 dollars. The total high to low retracement was only $14.85, compared to a massive $39.89 dollars for the December 25th futures contract.
In our article yesterday we cautioned our readers that a correction in futures prices is a possibility. We said ”Historically futures have a hard time holding onto these types of large premiums over spot. Still this doesn’t mean that you should short futures…’‘ and we added ”if bitcoin prices tumble, futures, especially longer-dated contracts, will be hurt the most.
The declines during the past 48 hours are significant, especially on futures. But the trend higher is technically still in place. To end it, the bears will need to push prices below the $256.88 swing low on BTC-E. On OKCoin this swing low is at $260.37 dollars per coin. On the upper end, the level to beat is the $300 round figure on OKCoin.
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