Trading the Bitcoin Calendar Spread

The calendar spread is a useful gauge of how bullish or bearish traders are in a forward starting-time period. In early February, Bitcoin lost close to 70% of its value measured against its December 2017 all-time high. The spread reached a low of 0.42% annualized during the same period.

The source for this analysis is BitMEX► BitMEX Crypto Exchange

Chart: March (XBTH18) and June (XBTM18) Bitcoin/USD contract spread

Bitcoin Calendar Spread

Source: BitMEX

The above chart shows the Bitcoin price and the annualized premium of the March (XBTH18) and June (XBTM18) Bitcoin/USD contract spread.

The calendar spread is calculated by the following function:

Annualised Premium = [(XBTM18 Price - XBTH18 Price) / Bitcoin Spot] / 0.2493

0.2493 represents the annualized time value between the March and June expiry dates.

Bitcoin Trade Signal -February 2018

Bitcoin is trading at very crucial levels. BTC/USD trades at $9.250 near the key resistance levels $9.250-$9.500. If the Bitcoin/USD price manages to cross above $9.500 then we should expect a quick move to $10.200-$10.300

  • Target-1: $9.480
  • Target-2: $10.200-$10.300
  • Target-3: $11.600-$11.800

Chart: Bitcoin/USD (H4)

Bitcoin/USD (H4)

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■ Bitcoin Trade Signal -February 2018