Spiking CME Bitcoin Futures Open Interest Could Signal Breakout Is Finally Near

Tony "The Bull" Severino

4 years ago

3 mins read

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Bitcoin futures open interest on the Chicago Merchantile Exchange suddenly surging 16% could be a signal that the recent boredom may finally break.

After nearly three full months of sideways trading and record-low volatility, does this subset of traders have insight into a big breakout coming? Or could these traders potentially be jumping the gun yet again?

Bitcoin BTCUSD Daily Bollinger Bands | Source: TradingView

Bitcoin Price Finally Makes A Move, But Will The Range Break?

BTCUSD is trading at $9,350 after one of the largest intraday moves in recent weeks. Yesterday’s early morning surge may have been the start of the breakout that traders have been waiting for.

The pump coinciding with stocks surging and gold setting new local highs, sent crypto assets soaring higher. Bitcoin broke through a short-term downtrend line and symmetrical triangle, but the reaction has been meager thus far considering the consolidation.

Bitcoin price has been trading sideways for almost 90 days now, and while data shows that another 90 days is still possible, analysts are clamoring for an explosive move.

Bollinger Bands are at the tightest point since the last over 50% move in Bitcoin that took the asset to its bear market bottom. After such coiling, yesterday’s move in BTC resulted in a push through the middle-line in the Bollinger Bands and a first lift in the outer bands.

It also pushed the asset’s price to the top of the bands, prompting the indicator’s creator to warn of a “head fake.”

CME #bitcoin futures open interest increased 16% yesterday pic.twitter.com/shbvY0gpKI

— skew (@skewdotcom) July 22, 2020

Early Signs Of Life Lead To 16% Climb In CME Futures Open Interest

This latest move also caused a massive surge in open interest on Bitcoin futures trading platform known as CME.

The platform primarily serves high-wealth individuals, institutional investors, and more. Due to this, the platform often can dictate major movements in the crypto market. For this reason, analysts pay close attention to things like open interest on the platform, or where gaps are left behind when trading sessions close for the weekend.

After yesterday’s move in BTCUSD, CME open interest grew by 16% according to Skew data.

Open interest on the platform has been in a downtrend since late May and early June, before the sideways action took hold. This rise may see open interest break out from the downtrend along with the breakout in the downtrend resistance line.

Now that the Bollinger Bands are beginning to lift, and CME open interest is rising again, the explosive move analysts have been waiting for may finally be here.

Data had shown that the sideways range could continue for another three months, but more signals are pointing to the breakout happening sooner than later.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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