Bitcoin in trouble again

[Ben Graham]

Bitcoin has plummeted to around $85,000, while Ethereum has dropped below $2,900, indicating the dominance of a bearish trend that has been going on since November of this year.

A number of other altcoins, including SOL, XRP, and Dogecoin, have also declined. Meanwhile, it was announced yesterday that CME Group, the leading global platform for trading derivative financial instruments, has launched futures for XRP and SOL with quotes tied to the spot market.

The statement mentioned that XRP and SOL futures with spot pricing will complement the existing Bitcoin and Ethereum futures. These contracts will allow investors to trade futures positions in the spot market with the added advantage of longer expiry dates, eliminating the need for frequent rollover of positions.

"We are seeing high demand for our current Bitcoin and Ether futures with spot pricing: since their launch in June, over 1.3 million contracts have been sold, and we are pleased to add XRP and SOL to our offerings," said Giovanni Vichioso, head of cryptocurrency products at CME Group. "The contracts, designed for retail traders, are the smallest we offer in our crypto complex, providing clients with greater accuracy and market accessibility, while the pricing will align with conditions they are already familiar with. Moreover, futures with spot pricing will offer traders greater flexibility, allowing them to maintain a position according to their long-term perspective or easily open and close positions without the need for frequent rollovers."

Clearly, this move opens new opportunities for investors seeking access to these cryptocurrencies without the need for direct ownership. XRP and SOL futures will enable traders to bet on the future price of these assets using leverage and hedging strategies. CME Group's decision reflects the growing interest in cryptocurrencies among institutional investors as well. The exchange has previously launched successful futures for Bitcoin and Ethereum. The expansion of cryptocurrency derivatives indicates CME Group's belief in the long-term potential of these assets.

Trading recommendations

Regarding the technical picture for Bitcoin, buyers are currently targeting a return to $88,200, which opens a direct path to $90,700, and from there it's just a step away to $93,000. The furthest target will be the peak around $95,000, with a breakout at this level indicating attempts to return to a bull market. If Bitcoin falls, I expect buyers at the $85,400 level. A move below this area could quickly drag BTC down to around $83,200, with the furthest target being the $81,200 area.

As for the technical picture of Ethereum, a clear consolidation above the $2,997 level opens a direct road to $3,105. The ultimate target will be the peak around $3,233, with a breakthrough indicating strengthening bullish sentiment in the market and renewed interest from buyers. If Ethereum falls, I expect buyers at the $2,858 level. A retreat below this area could swiftly push ETH down to around $2,763, with the furthest target being the $2,684 area.

What's on the chart

• Red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.

The material has been provided by InstaForex Company - www.instaforex.com