If you have followed our structure (see chart below) and have taken a long position, from a technical point of view, the pair has reached TARGET 1, at the moment we can not exclude a continuation of this rebound, but it is correct to take part of profit on these levels, and move stop loss to breakeven for the rest of position. From here, some pullbacks are possible in short term.
HARMONIC STRUCTURE IN PLAY
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Moody's published the report earlier today, a move that comes nearly two months after the exchanges first moved to list the derivative products. The 11-page release argues that the combination of risk management controls at the two firms, as well as the nascent state of that market, reduces those risks.
The report presents a combination of observations on the development of those futures markets to date, as well as an examination of the issues Moody's believes, are most pressing in this context, including the volatile price of bitcoin. That said, the report's authors say that moves to request higher margins for bitcoin futures trades helps lessen the risks.
"Bitcoin’s price volatility presents particular risk management challenges for CCPs, making it more difficult to close out a defaulting clearing member’s exposures," the firm wrote. "To manage this risk, both CME and Cboe set relatively high margins for Bitcoin futures trades to mitigate counterparty exposure, and have since upped margins from those they first presented to regulators. For now low volumes also limit potential losses to a CCP."
This also goes for brokers who are offering access to bitcoin futures, Moody's goes on to argue – even if it's not entirely clear how those margins will be adjusted in the months to come. The report names TD Ameritrade and E*Trade in particular.
"Clearing margins will remain in flux, and may rise rapidly and significantly in response to higher spot Bitcoin price volatility, and brokers will have to adhere to these changes."
Meaning there is a huge leg up coming..