Industry news:
CME's bitcoin futures product is continuing to show signs of increased popularity, with June setting a new record for open interest amid a surge of new account sign-ups.
More than 2,960 accounts have traded CME Group's bitcoin (BTC) futures across all client types and time zones since launch, according to new data from the derivatives marketplace. In 2019 alone, there has been more than 950 new accounts created, marking a 30 percent increase in total client sign-ups. The more potential liquidity doesn't mean more volatility, I also see it like more stability in the price.
Trading recommendation:
BTC did trade higher in past 24 hours and the price tested the level of $11.500 (strong resistance). I see further downside potential on the BTC.
Purple rectangle – Gap zone resistance $11.500-$11.800
Red rectangle- Support 1 ($9.705)
Green rectangle – Support 2 ($9.166)
Red trendlines – Bear flag
Very interesting spot on BTC at $11.225, since there is the strong resistance (purple rectangle) and broken bear flag on the h4 time-frame. Additionally, there is the overbought condition on the Stochastic oscillator, which is sign that up cycle is probably finished and that BTC may start new down cycle. MACD is still in negative territory, below the zero line. As long as the BTC is trading below the $11.800, you should watch for selling opportunities on the rallies. First downward target is set at the price of $9.700.
