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Bitcoin prices may be way down from this year’s peak but institutional investment is showing no signs of slowing down. Futures contracts are naturally a little different to buying and holding BTC but Bakkt keeps breaking the records with their products.

Big Bitcoin Futures Day For Bakkt

From a slow start momentum for Bakkt physically settled Bitcoin futures is growing steadily. New records for trading volume are being set and the latest was yesterday with 4,443 contracts traded according to the company.

“Two months after their debut, Bakkt Bitcoin Futures reached a record high of 4,443 contracts traded today – up over 60% from our last record-setting day,”

The Intercontinental Exchange owned firm added that it was bullish on momentum in the lead up to the launch of Bitcoin options contracts on December 9. The difference with options is that the investor does not have to sell the asset when the contract expires. Futures are fixed whereas options are more flexible.

The latest Bakkt bot post a couple of hours ago indicated that today could see even bigger numbers.

Trader and analyst Alex Krüger noted that the volume is bullish as is the number of Bitcoins that are physically delivered.

“But what makes Bakkt special for bulls is not its volume, but how many bitcoins are physically delivered. In November, the number was 17 bitcoins. In October, 15.”

He observed that the daily settled contracts have zero volume, adding;

“The more regulated volume, the better. Bakkt’s growth is very positive. Yet keep present Bakkt is not that different from the CME. It is almost entirely paper trading.”

Krüger added that he wouldn’t be surprised if a full 100 BTC were delivered in December. Physically settled contracts are good for Bitcoin markets but Bakkt also has a cash settled product in the works which is not so positive for the space.

Cash Settled Contracts in Singapore

Aside from the usual twitter scams there were a number of responses regarding these cash settled Bitcoin contracts and concern seems to be mounting. The situation is similar to crypto exchanges though were traders deposit fiat, buy and sell Bitcoin, hopefully at a profit, and turn it back into fiat again.

The new cash settled contracts will be offered in Singapore. Last week, President and COO of ICE Futures and Clear Singapore, Lucas Schmeddes, stated;

“Building off the success of our deliverable futures contract, the cash-settled futures will leverage ICE’s regulated, globally-accessible market to offer a safe, secure and compliant environment for the trading of bitcoin.”

There will be no need to hold BTC through cash settled contracts though Bakkt does offer crypto custody for those that fancy hodling for a while. Considering current prices there may be a few taking that option at the moment.

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Martin Young , 2019-11-28 06:00:30

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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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