The exchange rate of bitcoin for the week gained 2.45%, when to buy cryptocurrency
Crypto-currency market for the fifth consecutive day trading in a flat market-leading coins do not differ much from the values they displayed in the middle of last week.
The exchange rate of bitcoin for the week rose by +2,45%, but let’s not forget, the last indicator showed a drop of -13%, so the growth is very relative. “Home” cryptocurrency is now trading at $6476, and the fact that the price failed to break resistance at $6500 testifies to weakness of buyers and insufficient, the most likely scenario in the current environment seems to decrease to $5900-6000 per coin, where is the support for the current sideways pattern.
In the absence of a clear understanding of the trend, it makes sense to pay attention to non-standard instruments, such as the analysis of the dynamics of futures contracts on the bitcoin on stock exchange the CBOE. Using them it is possible to analyze the behavior of other market participants, among which the distinction between transactions of major players and small speculators.
Accordingly, knowing what large players are doing, you can avoid fatal mistakes, and sometimes “catch the trend” at the very beginning. Although the rates m are published with a delay of almost a week, the most important are their dynamics.
Recent reports of the Commission on trade commodity futures (CFTC) indicate that large speculators reduced their positions on Bitcoin -84 contract to 3166 Bitcoin. Large speculative players cut the net short position for five of the last seven weeks. The net position fell below the levels of August and was the lowest since the beginning of futures trading in December.
Small speculators more often act strictly on the contrary. And now, their transactions are contrary to the position of major players – they have reduced the position to buy contracts on bitcoin of 49 contracts until 1925. Small speculators cut net position for the purchase of five of the last seven weeks, while a large cut positions that is perceived by some players as preparation for new large-scale rally, but here one should not jump to conclusions.
If we analyze the CFTC report as a whole, it is noticeable that although large speculators reduced short positions, however they are almost twice the size of the purchase positions: 3166 Short contracts versus Long 1927. While hedgers do not participate in the trading of futures on bitcoin.
Given the uncertainty with the regulatory issues of industry interest to trade bitcoin futures, you receive the units (if to compare the volumes with traditional instruments). It is difficult to speak about prospects of the development of a new uptrend in the market, in conditions of extremely low volumes and lack of hints on the formation of a new trend. However, when approaching the neighborhood of $6000 per coin, many traders are still set to buy, hoping for a rebound prices up. The optimal strategy is to wait for test course $5900-6000 per coin, and only if this level is not broken, to proceed on the purchase. This will save not only nerve cells but also money in the accounts.
“International Financial Center”