Bitcoin Continues to Claw Back from 2018’s Lows


Steadily and somewhat quietly, the world’s biggest cryptocurrency, is clawing upward.

Cboe’s Bitcoin futures (@XBT) traded as high as 8390 this morning, a level last seen on May 22. They’re up more than 30 percent in the last month.

The rally has followed a report on June 27 that the U.S. Securities and Exchange Commission is seeking comments on a Bitcoin exchange-traded fund. That potentially raises hopes that regulators would reverse earlier prohibitions against such an instrument. If it were allowed, the result could be a potentially much wider base of buyers for the cryptocurrency.

There might be some technical catalysts as well. For example, @XBT has formed an inverse head-and-shoulders reversal pattern and seems to be breaking a downward trendline. (See chart below.) Seasonality may also favor the bulls because Bitcoin rose between July and December over the last three years.

One final note: The buyers are focused almost entirely on Bitcoin, with altcoins lagging. However this morning other tokens like Ethereum (ETHUSD), Bitcoin cash (BCHUSD) and Litecoin (LTCUSD) seem to be catching up.

Bitcoin futures (@XBT) showing potential chart patterns and indicators.
Trade in milliseconds

Explore the most actively traded options

Trade 600+ futures products on an advanced platform

Previous articleTrading the Volatility Crush after a Quarterly Earnings: Options in Focus
Next articleDon’s Notebook July 24, 2018
David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.