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Bitcoin (BTC) institutional trading platform Bakkt has set another giant new record for its futures contracts, topping 5,600 BTC on the day.

As the company confirmed on Twitter, Nov. 27 saw a fresh all-time volume high for Bakkt’s monthly Bitcoin futures. During the session, Bakkt reported 4,443 BTC traded — over 60% higher than its previous record. 

Bakkt doubles Bitcoin futures record

Subsequently, non-affiliated monitoring resource Bakkt Bot counted an even higher total for the day — 5,671 BTC ($42.5 million).

According to Bakkt Bot, the previous record in dollar terms was $20.3 million Nov. 22, making Wednesday’s achievement 109% higher.

In total, Bakkt’s monthly futures have now traded for two months, having previously attracted attention for unexpectedly low volumes.

More recently, a Bitcoin custody solution has begun operations, while new financial products are set to follow next month.

“We look forward to building on this momentum as we approach the launch of the Bakkt Bitcoin Options contracts on Dec 9th,” staff added while announcing the progress.

What bear market?

Interest in Bakkt currently contrasts with the overall market sentiment in Bitcoin, which has fallen considerably against the dollar in recent weeks. 

As Cointelegraph reported, one analyst considers investors were spooked by a fresh assault on exchanges from China, exiting their positions to buy back in at lower prices. 

A subsequent liquidity squeeze could be compounding the selling pressure, VanEck executive Gabor Gurbacs added.

Meanwhile, a recent report from exchange Binance, which also offers futures, revealed over 90% of institutional investors choose to store their coins with trusted third parties.

Cointelegraph By William Suberg , 2019-11-28 09:56:00 ,

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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.

Featured Image from Shutterstock

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

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