XBTZ19 Data Capture, 6 months of Bitcoin Futures dataIn my experience Tradingview does not keep data of expired Bitmex contracts after expiration. The primary purpose of this post is to keep the valuable data from XBTZ19 contract from being lost forever. My indicator script XBT Contango Calculator Version 3 is used in this example to capture all the data from the December Futures contract. This post should be a historical record of how backwardation and contango affected price action during the last 6 months. I will do this post at each expiration, primarily for my own benefit and analysis, but also as a record other traders in the community can look back on. Please also see below "Links to related Ideas"
XBTZ19
5 month repeatable pattern. XBT Backwardation for Christmas?While studying XBT Contango and Backwardation I noticed a repeatable pattern that XBT was going into backwardation every month for the last 5 months around the same time. I don't have an answer for this, but my assumption is it has to do with commercial interests and how they are driving the XBT Futures market.
The strategy does not always catch the top/bottom perfectly, but it would have been profitable 5 months in a row if executed properly. I noticed that every month for the last 5 months XBT went in backwardation at the end of every month around the 24th - 28th. Typically backwardation is a great buying opportunity to go long, however since the current trend is bearish i prefer to trade with current trend. Since backwardation was repeatable, and likely driven by commercial interest or other fundamentals, I was curious to see if there was a time each month that would be best time to take a short? So far I have noticed between the 6th and 10th each month would provide a profitable trade to hold until later in the month in hopes of catching backwardation to cover.
All this analysis was made possible with my indicator script the XBT Contango Calculator. I have been making improvements to the original code and hope to release Version 3 in the near future.
Comparison indicator - XBTZ19 / XBTUSD [BITMEX]This chart gives users indicator that how the quotation gap between future and Perpetual SWAP on BitMEX.
Several conclusions base on simulation:
1. Both uptrend trend and downtrend could be used to gain profit;
2. During uptrend, quotation gap expanded, Long on SWAP and short on future came with loss and short on SWAP while long on future will be profitable;
3. During downtrend, quotation gap narrowed, Long on SWAP and short on future came with profit and short on SWAP while long on future will come to loss;
4. Price fluctation compound effect, the price fluctuation of underlying asset will have positive compound effect.
XBTZ18 Pump incoming to 11,5KHi guys,
BTC broke his wedge, perfect retest will be at 8700. Its a buy for me
BTC will retrace his downtrend to 0.61/ 0.76 before more blood
ITs not a financial advice
Just my trade idea
Cheers
BTC Daily ReportEducational purposes only
Indicators on chart:
BB 100 Day 1.15, 0.55, 0.1 Stdevs (Blue)
BB 200 Day 1.15, 0.55, 0.1 Stdevs (Orange)
BB 100 Week 1.15, 0.55, 0.1 Stdevs (Purple)
Daily Analysis/Report
Date/Time: Fri Nov 1, 2019 10am
Balance/UPNL: +0%
Open Positions: XBTH20 Long @ 9410
WEEK
S. Range: 8250 – 11000 / 9600
M. Range: 4000 – 11500 / 7750
CCI: Positive + Roll up
WAVEPM: 0.576
Upper: 11250
Lower: 8600
Trend: Neutral
DAY
S. Range: 7825 – 9475 / 8600
M. Range: 8300 – 10900 / 9600
CCI: N
WAVEPM: 0.676
Upper: 9600
Lower: 8600
Trend: Neutral
4H
S. Range: 9100 – 9200 / 9150
M. Range: 7700 – 9300 / 8600
CCI: Positive
WAVEPM: 0.723
Upper: 9300
Lower: 8600
Trend: Up on 200 period
BUYS
9030; 8600;
SELLS
9575; 11250;
>>>
NOTES
Strategy
COMPRESSION / RANGE
Mean Reversion
x
Fundamental Analysis
Positive Interest, but need 100mil/week to maintain
Halving coming up
Major resistance from regulators
Technical Analysis
Bullish candles
Key levels: 200D MA (9030); 100W MA (9575)
Forming Bullish Shelf/Bearish Bart and wedge between key levels
Take Profit
9575
New Executions
XBTH20 Long @ 9410
Bulls NEED to reclaim previous supportReclaim that level and bulls have hope
If it rejects, targeting $6k
Short Term #BTC Outlook. Both Arguments Presented. Targets.Diamond Bottom...Confluence in the MACD Historgram downtrend coupled with Rising volume on a series of two very bearish daily candles. Then you've got this Death Cross Looming overhead. But what's in front of us right now is the fact that the 200 day Moving Average on the 2hr chart, which held for 7 times before it broke down over a course of a month, is what is sitting on top of BTC's head right now. Anyways...I see a diamond bottom pattern but I see extreme weakness right now on the part of the bulls....So...I have actually given them the benefit of the doubt and drew them a potential diamond bottom for them....Coincidentally, if the price hits 7714 within the next 3 days, we will have performed a perfect 1 to 1 retracement of the impulse wave. Coincidence? Mathematical anomaly? I don't know. What I do know is that what I am seeing, is there.
Bitcoin is in a very precarious situation right now. Either bulls step it up now or they will drop to 7.7 to 7.8k region where this Diamond Bottom would be at risk of failure (a failure that bulls just cannot afford since this will send BTC spiraling down to the 6.4k region. Something that my friend @Crediblecrypto has been calling for over a month. Read my comments on the chart. If you have any questions feel free to reach me at alex@bitbookkeeper.com