bitcoin futures

COT Reports Highlight BTC Futures Gap, EOS Gains 17%, CHZ Targets Soccer Fans, Sep. 9

Sep 9, 2019, 8:33PM
4 min, 27 sec READ

Bitcoin holds support for the week as EOS gains 17% and soccer club Atletico Madrid joins the sports teams embracing fan tokens.

BTC

In my last article I wrote that Bitcoin,  

...saw support at a weekly resistance level around $9,500 and this gives hope for further gains.

We did see some gains with BTC rallying through the $10,000 level once more. The price went close to $11,000 before settling around $10,250. 

The price of BTC is consolidating and trading in a range as we await some kind of catalyst for a breakout. We still have two weeks until the Bakkt exchange goes live and this may be the event that provides additional volumes. 

Data from the weekly “Commitment of Traders” report released by the U.S. Commodity Futures Trading Commission (CFTC) shows the difference between the volumes in Bitcoin versus other commodities on the futures exchange. The current volume on the Chicago Mercantile Exchange (CME) Bitcoin futures contract is very light in comparison to gold and crude oil.

Many hope that the upcoming Bakkt contract will bring the volumes more in line. The Bakkt futures contract will provide physical delivery and institutional-grade security which is more in line with the other assets. The figures are slightly skewed by the fact that small speculators are more centered on other exchanges and that there is less commercial demand. If we do see large speculators and fund managers adding to their portfolios, however, it will be positive for prices and the additional liquidity will also solve the volatility that BTC has been criticized for in the past. 

bitcoin price
BTC Price Index

I mentioned in a previous article that the correction in BTC was a measured move and a simple pullback from the over-extended rally. The Fibonacci support at 38.2% of the rally is still holding and we are awaiting confirmation of the next direction. We may not see much happening over the next two weeks but it will be interesting to see how the Bakkt futures launch affects volume and whether we will see the futures contracts gap close between BTC and its peers.

EOS 

EOS is one of the top performers on the week with a gain of 17%, which sees EOS hold the number 7 spot in the list of coins with a market cap of $3.6 billion and the price trading near $3.90. 

eos coin
EOS Price Index

We can see on the weekly chart that there is a convergence of key resistance around the $4.00 mark with the 50 moving average residing there also. A strong move above there would signify further gains ahead. If the price can push higher, then the $7-8.00 level is next resistance. 

Block.one recently provided a strategic vision for the growth of the project with the goal of making EOSIO “the most performant blockchain software in the market.”

The core areas of the vision are defined as:

  • Scalability: More apps, more users
  • Developers: Better tooling, faster app development
  • Users: Greater security, less friction
  • Enterprise: Greater flexibility, better compliance

A project that is utilizing the EOS blockchain is GeneOS, which is focused on wellness insights and genetic data.

geneos

One of the highlights of the project is the goal to allow users to rent their health or genetic data for research. This is one of the benefits of blockchain and is an example of how it can benefit science and the public. Blockchain marketplaces where users can monetize their data is something that could disrupt areas such as social media, where platforms are free to use but are harvesting personal data and consumer habits.

CHZ

Spanish soccer team Atletico Madrid have become the latest club to link up with the Socios.com blockchain and the Chiliz token (CHZ).

atletico madrid token

Fan tokens are digital assets that allow fans to interact with the club through the app and earn rewards for participation. These rewards could later be used for merchandise and games and are also tradeable with the CHZ token, which is currently listed on Binance. 

Atletico is the latest in a list of big-name teams that have joined with Socios, including Juventus and Roma of Italy, Paris St Germain and also England’s West Ham United. A member of Atletico Madrid’s board commented on the partnership:

It is a pleasure to join this technological platform that other great European clubs already use and that will allow us to engage and interact with our fans from all over the world in a very innovative way. We are a Club that is constantly committed to technological innovation and in this sense, we see it as very positive to join the Socios.com community.

Atletico is listed at number 13 in a list of football clubs by value with an estimated net worth of $848 million. The other CHZ teams are also there Juventus at 9th being the richest with a valuation of $1.47 billion and annual revenue of $442 billion. 

We can expect to see other teams join the platform in the future, which would add demand for Chiliz as the token is needed for fan tokens. The current price of CHZ is $0.009 and the coin is ranked at 115 on the market cap list. The fan base of these teams could be a game-changer for CHZ which has a current market cap of $30 million.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.