CME Bitcoin Futures Opened: Can It Make BTC Rise Back To $10k?

The CME Bitcoin futures markets just re-opened and this could be the catalyst which leads the recovery of BTC back in the $10,000 region. Over the weekend, we saw that the Bitcoin price dropped from $10,500 to $9,650 which was a new weekly and monthly low, liquidating a significant amount of long contracts.

However, the Bitcoin news now show that on active days, the CME Bitcoin futures market settles between $300 million to $500 million in daily volume. In May 2019, for instance, the BTC price was hovering at around $13,000 and CME recorded an average volume of $515 million per day on its CME Bitcoin futures contracts.

While the margin trading platforms such as BitMEX and Binance Futures process billions of dollars in daily volume on paper, they are highly leveraged. As such, the real volume is only a fraction of the represented volume.

In May 2019, for instance, when the BTC price was hovering at around $13,000, CME recorded an average volume of $515 million in daily volume. May 2019, on the other hand, shows that the Bitcoin price was hovering around $13,000 back then. CME recorded an average volume of $515 million per day on its Bitcoin futures contracts.

While the margin trading platforms such as BitMEX and Binance Futures process billions of dollars in daily volume on paper, they are highly leveraged. As such, the real volume is only a fraction of the represented volume.

10 minutes before the bitcoin CME futures open.
The gap is standing at about $640 since Friday's close. pic.twitter.com/NmEDBk51o5

— ₿itBit (@BitBitCrypto) February 16, 2020

Given that the CME Bitcoin futures market closed at over $10,000, there is a major possibility that the opening of the CME market could lead to short liquidations and trigger a strong short squeeze in order to fill the gap.

According to an analyst named Satoshi Flipper, Bitcoin has now defended the $9,800 support level despite a short term wick which dropped below $9,700. If the CME Bitcoin Futures open leads to the continuation of a bullish market structure, BTC could have a more solid foundation for an extended rally in the short to medium term.

“Nice push with this 4 hour candle, above $9800 and a push above $9900s for a daily close would be brilliant CME Gap at $10,300,” the analyst Josh Rager said in the cryptocurrency news.

With the $9,900 levels having turned into a strong support level following the CME open, technical analysts anticipate yet another strong week for the market.