# Are you curious why the price of bitcoin dropped and then popped the last few days?

It really comes down to a couple things most likely:

- **Futures Expiration**

- **High Short Interest.**

Don't believe me?

Lets go to the charts...

# Futures Expiration.

This is a chart of what happens to the price of bitcoin on average around the CBOE Futures Contracts Expiration:

https://s33.postimg.cc/ul93x2v7j/9da5dbd9141ca902e68161f44ae82683_1.png

(Source: https://cryptocoinreport.net/reasons-behind-the-crypto-bear-market/)

As you can see, prices tend to be quite weak on average during the 7 days leading into expiration.

Then, prices often rebound rather significantly during the 7 days after expiration.

Futures Expiration was yesterday, August 15th, by the way.

Now, this could all be coincidence, but thus far the numbers certainly point to a pattern taking place.

# Another contributing factor is likely the high short interest.

Check out this chart from CNBC of the short interest listed on Bitfinex:

https://s33.postimg.cc/5t9hq06cv/Dkl1_Dmb_Vs_AAOe10.jpg

As you can see, the last time short interest was near these levels, the price of bitcoin reversed its downtrend and rallied roughly 50%.

# Will history repeat?

I have no idea, but the setup is there for a nice move up over the next few days.

Based on the numbers and the charts listed above, the best move by traders would be to buy bitcoin about 5 days before futures expiration, and then sell it 6 days after expiration.

Stay informed my friends.

Follow me: @jrcornel