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After a dismal start, interest in Bakkt’s physically-settled Bitcoin futures is finally improving. The Intercontinental Exchange-backed venture has just recorded three consecutive days above $10 million in trading.

The figures still lag far behind the 24-hour Bitcoin trading volume reported at other large trading venues. Compared to the volumes reported at Bakkt’s debut in September, however, yesterday’s $12.7 million trading session seems huge.

Interest in Bakkt Picks Up, $42.5 Million in Bitcoin Futures Contracts Trade in Last Three Days

According to the Bakkt monitoring Twitter account Bakkt Volume Bot (@BakktBot), the regulated, physically-settled futures trading platform enjoyed its third consecutive bumper day of trading yesterday. Down around 10 percent from its previous session, the exchange still saw $12.7 million worth of its contracts trade. This represents a total of 1,456 BTC.

Bakkt set a new all-time high just three trading days ago. On Friday November 8 $15.6 million dollars worth of Bitcoin futures traded. This represented a significant increase on the previous all-time high of $10.3 million, recorded on October 25. Coincidentally, or not, the price of Bitcoin experienced a huge surge on October 24 following the recent endorsement of blockchain technology by the Chinese government.

Bakkt’s volume is still a long way behind that reported at the planet’s major cryptocurrency exchanges. BitcoinTradeVolume.com reports Binance, for example, as trading over $381 million. Meanwhile, the cash-settled Bitcoin futures contracts offered by the CME Group reportedly traded $133 million over the last 24-hours. However, given that Bakkt saw trading days as low as $200,000 shortly after its launch, the current figures represent a huge growth in interest in Bakkt’s futures contracts.

In other Bakkt news, the exchange has just opened its custody solution, Bakkt Warehouse, up to all institutional investors. As NewsBTC reported earlier this week, the service was previously only available to Bakkt clients wanting to trade its Bitcoin futures contracts. However, perceiving a need for regulated, institutional-grade custody, Bakkt extended the storage system to other interested clients around the world.

In addition to the extending of Bakkt Warehouse access, the ICE-backed venture is preparing to launch options on its futures contracts next month. The company says that such products will better enable traders to manage risk and the decision to launch them comes as a response to user demand. Meanwhile, the CME Group is working towards the launch of its own options products on its Bitcoin futures contracts. Expected in January next year, the product is still pending regulatory approval according to a release published yesterday.

 

Related Reading: Libra Crypto Crumbles as Facebook Launches Alternative Payments Platform

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Rick D. , 2019-11-13 20:00:56

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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