The Chicago Mercantile Exchange (CME) Bitcoin Futures Expiration happened this past week, and as explained in previous articles on Crypto.IQ, the CME Bitcoin Futures Expiration is often a critical pivot point for the Bitcoin (BTC) market. In other words, the CME Bitcoin Futures Expiration often marks the beginning of major Bitcoin uptrends and downtrends.
Therefore as this week begins, Bitcoin basically has a fresh start, and we could be at the start of a serious uptrend or a serious downtrend. The question is, which way will Bitcoin go?
The good news is that Bitcoin has been consistently rising since the expiration on Friday, from roughly $11,200 to $11,600 currently. Generally, the direction that Bitcoin heads right after the expiration is a good indicator of which direction Bitcoin will head for the entire month. Therefore, since we have an uptrend now, it suggests that Bitcoin will rise for the entire month.
Further, fundamentals for Bitcoin are looking positive. One of the biggest fundamentals is the block halving which occurred in May, which reduced selling pressure from miners by 50%. Indeed, just like after previous halvings, Bitcoin has been rising significantly since the halving occurred, and it seems this halving induced uptrend will continue.
Beyond the reduction in selling pressure from the halving, Bitcoin has become the most lucrative asset in the world in 2020. Bitcoin’s gains far exceed the gains in any other asset class, such as stocks, bonds, and commodities.
Due to this, both institutional and retail investors have been flocking to Bitcoin in increasing numbers. This feat is even more impressive when considering that the global economy is in shambles, yet the Bitcoin market continues to be hot despite that. All signs point towards continued economic chaos in the traditional economy, and this continued economic turmoil favors a continuation of the current crypto rally.
Another major fundamental is the rise of Decentralized Finance (DeFi), which has seen an eight-fold surge in investment in just a few months. The DeFi rally is showing no signs of slowing down, and this will continue to bring an influx of investment into Bitcoin and other major cryptocurrencies.
Thus, the CME Bitcoin Futures Expiration has given the Bitcoin market a fresh start this week, and it seems that start will be good, since there are strong fundamentals pushing Bitcoin upwards, and Bitcoin has already been rising since the expiration on Friday.
The long term resistance level around $12,000 will be the key level to watch if Bitcoin does indeed rally this week, and if Bitcoin is able to break that level, then long term resistance levels at $14,000 and $20,000 will be in play.