Bitcoin

Bitcoin Price Has Risen More Than $1K From Bakkt Futures News

August 19, 2019 at 11:10 AM | By Jit Sutradhar Markets News

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  • Bitcoin has increased by $ 1,000 since Friday’s announcement by Bakkt Exchange that it will launch physically established bitcoin futures on September 23. The price increase has neutralized the bearish configuration in the intraday charts seen last week.
  • Earnings could extend further to $ 11,000, as the hourly chart reports a bullish continuation pattern.
  • The weekly chart continues to call a deeper pullback to $ 9,000 with key moving averages (MA) that produce a first bearish crossing since February.
  • A weekly close above $ 12,000 is needed for a complete bullish revival.

Bitcoin (BTC) has earned $ 1,000 since the Bakkt exchange announced that it has a green light to offer bitcoin futures, but the key resistance is yet to come.

The main cryptocurrency collected an offer of around $ 9,700 in the US trading hours. UU. On Friday, it printed highs above $ 10,750 today, according to Bitstamp data.

In particular, the move above $ 10,000 occurred on Friday after CoinDesk reported that the young Intercontinental Exchange subsidiary, Bakkt, received regulatory approval to launch its highly anticipated platform for daily and monthly BTC futures.

The Bitcoin futures that Bakkt will launch will be physically liquidated, unlike the cash-settled futures listed on the Chicago Mercantile Exchange.

In a nutshell, BTC futures trading in Bakkt will not depend on unregulated spot markets for settlement prices and the party will receive the delivery of bitcoins from the Bakkt Digital Asset Warehouse at the end of the contract period.

Many observers, including cryptocurrency analyst and trader Scott Melker, believe that Bakkt’s physically delivered futures product will open the floodgates for institutional money and is a long-term bullish development for bitcoin.

BAKKT-news-@melker

Futures physically delivered require the actual purchase of bitcoins, which, according to Melker, is a “huge” development. In addition, there is a general consensus that the discovery of prices in new physical delivery markets will contribute to building confidence in BTC prices.

That said, some observers warn that a greater institutional volume does not necessarily translate into greater buying pressure.

NEKOz

“Volume is volume, don’t express your bias towards it,” tweeted today the popular cryptocurrency market analyst @CryptoNekoZ.

Meanwhile, financial analyst and technology journalist Joseph Young tweeted over the weekend that “the launch of Bakkt had a price on the market.”

So far, markets have reacted positively to Bakkt news if the $ 1,000 price increase is something to go through.

The cryptocurrency is currently trading at $ 10,700 in Bitstamp and could increase further to $ 11,000. However, the gains could be of short duration since the odds accumulate against the bulls, according to the technical tables.

Hourly chart

btc-hourly-chart

BTC witnessed a high volume ascending triangle rupture today. The bullish continuation pattern indicates a resumption of the rebound from last week’s low of $ 9,467 and has created space for an increase of $ 11,000.

So far, however, the hike has been limited to around $ 10,750.

Weekly table

weekly-chart

BTC fell 10.49 percent last week, strengthening the case of a deeper setback presented by last week’s rejection above $ 12,000.

The relative strength index of 14 weeks has created a bearish peak. In addition, the 5-week moving average (MA) has crossed below the 10-week MA for the first time since February.

Currently, the 5-week MA is seen at $ 10,610 and the 10-week MA is at $ 10,691. The bearish crossing indicates that the path of least resistance is down.

The moving average convergence divergence histogram continues to produce lower highs above the zero line, a sign of a weakened bullish momentum.

In general, the case of a $ 9,000 fall remains intact. The outlook would go bullish only if prices print a weekly close (Sunday, UTC) above $ 12,000.

Disclosure: the author has no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

Article Source: http://www.coindesk.com

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