Bitcoin Holds Support at $8.2k | BTC Futures Contracts Expire Today

Bitcoin Holds Support at $8.2k

Bitcoin holds support at $8.2k after an eventful day yesterday. Price climbed to $9k and was quickly rejected to a prior support level of $8.2k.

Daily

Looking at the daily chart above, Bitcoin is currently on a red 2 on the sequential indicator. A red 2 of this sort looks bearish for the rest of the weekend. However, support is holding strong at $8.2k and the bullish thesis is still intact.

4 Hour

The 4 hour chart above is currently on a price flip of a green one. The sequential indicator remains neutral on the 4 hour chart.

Cryptocurrency News

The largest batch of CME Bitcoin futures contracts are set to expire today. With $8 billion worth of volume already traded, May has been the most significant month thus far. The contract’s expiration will not directly effect the price since no physical Bitcoin is actually exchanged. However, price may be impacted indirectly as a result of traders hedging their bets by buying physical Bitcoin. While the contracts expire today, final settlement is not until Monday. Overall, it should be an interesting weekend which will give us an idea of how the futures market impacts Bitcoin’s price.

Chart Source Comes From Mati Greenspan, Senior Market Analyst at eToro.

Conclusion

Yesterday we claimed that a drop below $8.2k would launch us into a 30-40% pullback. While price has decreased to this level, support at $8.2k is holding on by a thread. Additionally, $9.4k is the most significant resistance level for the bulls. The crypto fear and greed index remains at a high level which could mean the market is still overly optimistic. Be cautious buying at this level. A dip below $8.2k could launch us back to prior support at $6.4k. If a dip should occur look to accumulate more coins in preparation for the next bull market.

Disclaimer: I am not a financial advisor. Nothing in this article should be considered financial advice. The author of the article owns Bitcoin.