Bitcoin Futures Bull Div Could Offer Crystal Ball Into Next Leg Up

The Chicago Mercantile Exchange more commonly referred to as CME, offers the de-facto futures contracts for Bitcoin since the end of the last bull market. But could the forward-looking price action also offer a potential glimpse into the future of what’s to come?
If this crystal ball works, the last leg up could be about to begin, and it could start with a simple bullish divergence.
Seeing Into Bitcoin’s Future With CME
CME is the top BTC futures exchange for institutional traders, and often a dominant force in the market. So dominant, that if any gaps are left behind over the weekend on the CME chart after the trading desk goes offline, they often get filled within the next week with a high degree of accuracy.
These sort of breakaway gaps are common with speculative assets like Bitcoin and other cryptocurrencies. Not all such gaps eventually get filled, but their importance is undeniable.
Related Reading | How Futures Traders Could See The Bitcoin Selloff Coming
Recently, the CME chart has begun to diverge ever so slightly from the price action on spot exchanges, enough to take notice. Just recently, a lack of a momentum crossover on the daily timeframe led to a nasty fakeout while CME was offline. The bullish crossover never existed on CME, so there was less bait for institutions to fall for.
Now, the CME futures platform could be offering a potential future look at the next leg up.

CME is showing a bullish divergence and a potential break of momentum | Source: BTCUSDT on TradingView.com
Last Leg Of Bull Run Begins With Flag To $82,000
There is yet another divergence to be seen on the CME BTC futures chart – a bullish divergence on the daily RSI, that closely matches the signal that sent Bitcoin flying last September.
Related Reading | Bitcoin Golden Cross: Everything You Need To Know About The Bullish Signal
A corresponding downtrend on the LMACD – depicting downward momentum – is waiting to be broken. If a similar breakout of momentum is to follow, the final leg up of the bull market could follow.

This potential bull flag has a target of $82,000 | Source: BTCUSDT on TradingView.com
These signals on their own prove very little, and divergences are only confirmed in hindsight. However, the massive bull flag with a target of $82,000 could eventually act as all the proof necessary.
A breakout of the bull flag pattern still could come with several retests of the top trend line, so more sideways is possible before upside ever materializes. Of course, given how extreme the recent selloff was and the still lingering fear due to Evergrande, the recent bounce might not be as bullish as crypto holders would hope.
Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 51,632.83
ethereum
Ethereum (ETH) $ 3,038.28
tether
Tether (USDT) $ 0.999934
bnb
BNB (BNB) $ 384.55
solana
Solana (SOL) $ 102.71
staked-ether
Lido Staked Ether (STETH) $ 3,037.48
xrp
XRP (XRP) $ 0.544145
usd-coin
USDC (USDC) $ 0.999808
cardano
Cardano (ADA) $ 0.588881
avalanche-2
Avalanche (AVAX) $ 36.78
dogecoin
Dogecoin (DOGE) $ 0.086072
tron
TRON (TRX) $ 0.137559
chainlink
Chainlink (LINK) $ 18.56
polkadot
Polkadot (DOT) $ 7.76
matic-network
Polygon (MATIC) $ 0.974910
uniswap
Uniswap (UNI) $ 10.86
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 51,682.85
the-open-network
Toncoin (TON) $ 2.12
internet-computer
Internet Computer (ICP) $ 12.45
shiba-inu
Shiba Inu (SHIB) $ 0.000010
bitcoin-cash
Bitcoin Cash (BCH) $ 267.12
litecoin
Litecoin (LTC) $ 70.00
dai
Dai (DAI) $ 0.999505
filecoin
Filecoin (FIL) $ 8.35
immutable-x
Immutable (IMX) $ 3.07
cosmos
Cosmos Hub (ATOM) $ 10.27
leo-token
LEO Token (LEO) $ 4.22
kaspa
Kaspa (KAS) $ 0.171808
near
NEAR Protocol (NEAR) $ 3.68
ethereum-classic
Ethereum Classic (ETC) $ 26.27
blockstack
Stacks (STX) $ 2.53
bittensor
Bittensor (TAO) $ 579.76
hedera-hashgraph
Hedera (HBAR) $ 0.107544
optimism
Optimism (OP) $ 3.70
aptos
Aptos (APT) $ 9.50
stellar
Stellar (XLM) $ 0.116534
first-digital-usd
First Digital USD (FDUSD) $ 0.999044
vechain
VeChain (VET) $ 0.044647
okb
OKB (OKB) $ 50.51
injective-protocol
Injective (INJ) $ 34.03
lido-dao
Lido DAO (LDO) $ 3.33
celestia
Celestia (TIA) $ 17.06
render-token
Render (RNDR) $ 7.45
the-graph
The Graph (GRT) $ 0.292972
mantle
Mantle (MNT) $ 0.799716
crypto-com-chain
Cronos (CRO) $ 0.093275
arbitrum
Arbitrum (ARB) $ 1.87
monero
Monero (XMR) $ 124.18
sei-network
Sei (SEI) $ 0.829932
sui
Sui (SUI) $ 1.64