Bitcoin

Bitcoin futures hit 20,300 just before BTC price fell $ 1,000 in 10 minutes

Bitcoin (BTC) futures hit $ 20,000 on December 1 as historic highs finally turned into a new price era for the BTC / USD pair.

TradingView data showed that the Chicago Mercantile Exchange bitcoin futures surpassed the all-time high of $ 20,000 during Tuesday’s trading.

BTC price: $ 20,000 causes known volatility

At the end of this issue, BTC CME futures spikes of $ 20,300 had occurred amid characteristic volatility, which caused the BTC / USD pair to drop to $ 19,000 in less than ten minutes.

1-minute chart of the BTC / USD pair for December 1, 2020. Source: TradingView
Bitcoin futures hit 20,300 just before BTC price fell $ 1,000 in 10 minutes
Bitcoin futures hit 20,300 just before BTC price fell $ 1,000 in 10 minutes

“It’s worth noting that a deviation of $ 1,000 is now only 5%. Adjust accordingly “, tweeted the popular pseudonym CryptoBull Trader in response to the sudden failure.

However, The move is a momentous opportunity for Bitcoin, which today officially passed its all-time high of $ 19,892 almost three years ago.

Since futures were usually a modest percentage above the spot rate, the order books of CME and other traders were already ready to break new ground first. In fact, CME topped $ 20,000 when it launched at around $ 20,700 in December 2017, and the market is still expecting new all-time highs on Tuesday.

CME Bitcoin Futures 1 week chart. Source: TradingView

As Cointelegraph reported, the record volume and open interest had already led analysts to see the level of institutional interest in Bitcoin by the end of 2020.

This year, Bitcoin set it apart from 2017 when an earlier attempt to hit $ 20,000 in the spot markets coincided with the launch of the first futures markets.

Thanks to this weekend’s volatility, a huge $ 1,300 “gap” remained open in the futures markets as the new highs hit, traditionally suggesting that the BTC / USD pair will fall to “fill” it.. If so, such a pullback could carry the pair as low as $ 16,900.

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