Bitcoin could not withstand the selling pressure after losing its grip on USD 10,000 yet again during Europe trading time yesterday when the cryptocurrency slid down from its daily high of USD 10,259 to remain under 5-digit figures all the way until Eastern Coast in the US opened to trade.
Even then, the recovery failed to last four hours. After making the arduous climb to USD 10,129, price suddenly took a plunge to USD 9,660 at around 10:30 pm UTC and now trades around that same price as Shanghai approaches afternoon (CoinDesk).
Altcoins are now back at where they were before last week’s recovery, and the bearish bias looks to be confirmed if Bitcoin cannot reclaim lost territory within the next 24 hours.
$BTC looks to be creating lower-highs and lower-lows on the daily chart
Marked are the open and support areas based on the weekly chart with previous support possibly flipping to resistance
If confirmed, watching the next weekly support at $8975 as a potential target pic.twitter.com/yG2WO2yrzX
— Josh Rager
(@Josh_Rager) July 23, 2019
Josh Rager, crypto analyst, is one of those who has now turned to go with the current, with previous support levels likely to turn into resistance. The lower highs that have been managed, coupled with lower lows, leads Rager to believe that we may have to dig in and prepare for a USD 8,975 valuation should bears continue to have their way.
With the headlines in the news still equal in terms of positive and negative coverage this week, Bitcoin’s dominance as pointed out yesterday, continues to be the constant winner, and advocates will be pleased to see how sentiment finds good support in fundamentals like that.
One potentially important piece of news that could affect sentiment this week is that of Bakkt, the platform for Bitcoin futures that was predicted to be the catalyst for institutional investment in Bitcoin. After over a year of intense hype leading up to its original launch at the end of 2018, Bakkt eventually ran into operational hurdles and has been delaying its launch over and over again.
Its latest announcement yesterday seemed to be more of the same news as in the past few announcements, in so many words explaining that they were not ready to formally launch the platform. Whether this delay is to do with technical aspects as seems to be from the wording of their blog posts is a matter of some speculation online, with some believing that it is actually their regulatory compliance that is holding the launch back.
Today kicks off user acceptance testing @ICE_Markets for the Bakkt Bitcoin Daily & Monthly Futures contracts
Testing is proceeding as planned with participants from around the world
— Bakkt (@Bakkt) July 22, 2019
As per the info from the platform, they are now accepting people to test their daily and monthly futures, with international users invited to apply to become the first testers. The timing was deliberate, since 22 July 2019 is only two days after the 50th anniversary of Apollo 11. Once fully in play, Bakkt’s futures will be listed and traded at ICE Futures US and cleared at ICE Clear US.
Derived from the word “backed”, Bakkt’s major difference from previous iterations of Bitcoin futures is that its offerings will be the first one backed by actual Bitcoin, rather than cash settled like the offerings by other platforms. Some crypto commentators believe that it is this need to buy or sell actual Bitcoin to settle futures contracts that will really drive trading volumes for Bitcoin, as well as fuel an increasing demand for it, eventually driving prices upwards for the long term. The US Commodity Futures Trading Commission (CFTC) Commissioner Christopher Giancarlo himself believed that fintech’s sheer pace of progress had been the major cause for the regulators to stall their approvals for such instruments like Bakkt.
Many continue to believe that Bakkt is still significant and will have a major role to play in determining long-term trends for the crypto market. Fundstrat Global Advisors managing director Sam Doctor is confident that Bakkt will be ready in its full form by September. He says that institutional money is still very much in the wings, just waiting to pounce:
“There appears to be a critical mass of adopters ready to come on board on Day 1 of the Bakkt launch, with the sales team gaining traction among brokers, market makers, prop trading desks and liquidity providers.”
$BTC 1W CME Futures. Recap of unfilled gaps: ($11,730.00, $8,440.00, and $7,180.00) also note EMA 26 has crossed over EMA 55 as a potential bullish sign for the mid term. Short term let's see which gaps get filled first. #Bitcoin #Crypto pic.twitter.com/Dixbv3T2xH
— Bart Simpson (@CryptoBartSimps) July 22, 2019
Whatever the developments with Bakkt, the more immediate concern now for Bitcoin holders is how speculators will react, particularly because CME futures contracts which are about to expire has an existing gap around USD 8,500.
Some believe that this is now the rational level for Bitcoin to arrive at before it identifies a new support level. Optimists aren’t too worried, though. As this one trader puts it:
we had the cme futures bear.
soon we will have the bakkt bear.— Diary of a REKT man (@diaryrektman) July 23, 2019
And so, if we are now in the throes of the CME bear, as we seem to be every end of month, we should be prepared for a Bakkt bear. Judging from the past attempts at price breakdown, though, USD 8,500 levels will be seen by many as a rare, if not last, opportunity to make serious entry points.
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