Bitcoin classic VS future Bitcoin contract: where to look for the right support?

The upward recovery in bitcoin price since last December is well constructed, with alternation bullish impulses and of retracements.

Key technical factors of the article:

• The alternation between bullish impulses and periods of progressive retracement describes a movement of long-term recovery for the course of the Bitcoin according to the standards oftechnical analysis.
• The combination oftechnical analysis of BTC classic withAT of the future BTC contract optimizes the identification of support levels for the end of the current retracement.

In my previous technical post, I gave details of the trading positions of professionals, certainly showing an increase in the open buy position but a net balance still selling. The clash of these two opposing interests, while the BTC is in the initial phase of recovery, is reflected in the prices by a market which has alternated upward pulses and retracement phases since the beginning of the year.

A point all the same negative this week (with the reservation that the latter is not finished at the time of writing) $ 8,500 support did not contain the current retracement. But according to the standards of technical analysis, the current regularity in the relay between pulses & retracements is a healthy factor.

A debate is currently developing within the technical analyst community about the “good” underlying to analyze, the BTC classic where the future BTC contract ?

The trend of these two assets is identical, but the liquidity, the execution of orders, the type of participants and the time period of quotation are different. For example, bitcoin price common (Over The Counter, OTC, or over-the-counter) is traded all week, weekend included.

As for the future contract, it is not traded on weekends, therefore offers quotation holes (gap) and above all it is mainly dealt with by asset management and hedge fund traders. The future BTC contract is still recent, but each passing month sees its importance increase via the increase in volume and proposed deadlines.

My belief is that the best option is to combine technical analysis of these two markets, Bitcoin and Bitcoin future, to delimit areas of resistance and support; in short, one is not superior to the other. When the signals are converging, the probability (the AT is only one probability model among others on the stock market) of a reliable signal increases; in case of divergence, you must remain nuanced in its market view.

So what about the retracement of the moment?

The next tangible support is at $ 8,000 on the BTC, it is $ 8,250 / $ 8,300 on the future contract. The support area $ 8,000 / $ 8,300 seems to me to be the right interval to interrupt the retracement started last Sunday.

I suggest you follow up on this technical point on Cryptonaute At the beginning of next week.

Follow Vincent Ganne on Trading View for further analysis on the financial markets.

The technical thresholds and the trend indicated above are based on the technical approach "price, momentum, sentiment, ichimoku". The data come from Bitstamp and the graphics of TradingView. You can consult the history of our technical points on cryptocurrencies in click here.

This content is provided for informational purposes only and does not constitute an investment recommendation. We remind you that theinvestment in crypto assets, including Bitcoin, is extremely risky. Cryptocurrency prices are susceptible to large and unpredictable price movements.