As we start a new week, the big question we posed in our last post about XBT futures driving the crypto market has not been clearly answered. That SHOULD change this week and the current pattern set up is worth reviewing. We saw a sharp move down from $9000 but no real follow through even to test the key $7250 level so far.
We continue to see signs the XBT Bitcoin futures are now back in the picture for the crypto market and it?s worth nothing that price is moving in a tight range so far this weekend which is different than the fast moves up we saw during May. Futures begin trading for the new week at 6 PM EST?.
Two levels to watch carefully are:
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XBT – Gap from last week in $8600 range (see chart shown again below)
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BTC — $7250 key price level ? A close below this level would give a clear edge to the bears and be the highest probability trailing stop on ST/IT BTC positions.
ALTCOINS
There are multiple altcoins that could offer ST trade opportunities, and some to consider for intermediate term trading, too. However BTC continues to be the king and while some key coins like LTC once again is showing bullish leadership vs other large altcoins ? we see no signs that LTC BNB or any y altcoin is ready to breakout to the upside if BTC.breaks down.
Therefore, while we stand ready to offer a steady stream of altcoin trade updates if BTC can breakout to the upside, no trade strategy is worth pursuing at the moment until the indecision shown all over the BTC chart is resolved.
Meanwhile ? be ready with your trading strategy for current positions (especially stop loss levels) because volatility is likely to increase duirng this week.
