Bakkt Institutional Investors are Buying the Bitcoin Dips at Record Level

This month has been all about ranging for bitcoin.

The largest crypto asset entered August on a bullish note. On July 20th, BTC/USD was trading around $9,150 when the bulls came in, and bitcoin started uptrending.

On August 2nd, the digital asset went above $12,100 only to crash back to $10,500 within a few minutes. From there onwards, every Monday of this month, we have been hitting $12k level only to drop soon after.

This week, the market seems even more shaky than usual, with prices now around $11,470. The price has managed to recover somewhat from yesterday’s low of about $11,110, last seen on August 5th.

However, this has been largely in line with the precious metals as everyone eagerly awaited Fed Chairman Jerome Powell’s speech this Thursday during a virtual version of the Fed’s annual Jackson Hole, Wyoming, conference.

Powell is expected to outline the central bank’s most active efforts ever to spur inflation back to a healthy level. The conference matters for the crypto market as well because of Bitcoin correlation with gold and the speech being an important driver for risky markets.

Keeping Steady

Meanwhile, as the market turned red, Bakkt institutional investors took this opportunity to buy the dips.

Yesterday, the ICE-backed physically delivered bitcoin futures platform’s trading volume broke into an all-time high of $147 million.

The last time Bakkt made a new record was twice in a row on July 27th and 28th at $134 million and $145 million, respectively. This volume record was the result of the price of BTC surging from $9,900 to about $11,400.

bakkt-btc-futures
Source: Skew

This month also saw physical delivery on Bakkt recovering strongly, with the amount of bitcoin futures held in expiry increased by 133% to 135 BTC in August from the July lows at just 58 BTC.

The USD amount increased by even more, 202%, ending up at $1.6 million, as per Arcane Research.

August has been good for Bakkt as volume continues its way up. But unlike the trading volume and physical delivery of BTC, open interest has been moving in the opposite direction, downwards.

Open interest on bitcoin futures surged to $27 million on August 3rd, from $8 million on July 27th, and since then, it has been declining, reaching $9.5 million on August 25th.

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Author: AnTy

Bearish Catalysts for Bitcoin Price

This week, Bitcoin is ranging between $9,050 and $9,500. Currently, we are trading just above $9,200 after yesterday, Bitcoin’s price dropped $150 in seconds on Bitstamp, trading well below the rest of the market.

On the weekend, the bitcoin market has gone quiet, with just about $700 million in ‘real’ trading volume.

This ranging is not good for bitcoin but is bullish for altcoins that are already feeling the greens.

According to trader Crypto Michael, until BTC breaks out of the range, “anything between $8,500 and $10,500 is playground time for altcoins, and that could last a few months longer.”

Currently, the digital asset is holding support above the $9,000 barrier, and a breakthrough of $9,300 could push it towards $9,600.

However, Bitcoin futures aren’t looking good, and their position on CME is identical to the time when BTC crashed in March.

However, analyst FilbFilb doesn’t think “there will be a dump anything like last time.”

In March, bitcoin crashed in line with the rest of the global markets during the spreading coronavirus pandemic. Currently, the markets are flying with tech stocks in the lead.

Tail Risks

Some people are still tracking the S&P 500’s movement during the 1929 crash with the ongoing one, which is still in sync.

Although markets are surging, the risk of inflation and spike in coronavirus cases remains a tail risk.

There have been many days that some states in the US continue to see a record number of new infections. This further puts a smooth reopening at risk.

With the Fed using extraordinary measures to stimulate the economy, inflation is also on the radar of experts. Although a sudden spike is not called, UBS strategist Bhanu Bajwa feels it could be a potentially damaging long-shot scenario.

“We think the economy is currently far from unleashing these inflationary forces, but with COVID-19 cases globally and in the US still rising, we cannot yet completely rule out this tail risk,” he said. “Further, the inflation surge could happen quickly and with little warning.”

The additional round of stimulus checks, tax reductions, PPP loans, and enhanced unemployment insurance benefits may aid the inflation outlook. And an inflation spike is not good for stocks. Rather could be disastrous. In the 1970s, inflation doubled to about 11% that resulted in a 40% decline for the equities market.

However, it would be interesting to see how such a scenario, if it happens, would affect bitcoin, which has been called an inflation hedge by the likes of billionaire investor Paul Tudor Jones but remains in high correlation with SPX.

Tether Debacle

Another bearish catalyst for bitcoin is Tether, whose sister company Bitfinex must face NY suit in an $800 million stolen funds, as ordered by an appeals court this week.

Tether co-founder Brock Pierce, who recently announced that he is running for US President, said he is unsure whether the stablecoin will be able to weather the latest assault from regulators and government officials.

“Tether is, I think, one of the most important innovations in currency, but it also seemed like one of the higher risk businesses,” Pierce told Bloomberg. He hasn’t been involved with Tether since 2015.

Just this week, international regulators also recommended that stablecoins have to take greater steps to prevent money laundering and terrorism financing.

“We will work with and listen to the FATF (Financial Action Task Force) in order to continually improve our compliance function as these markets develop,” said Stu Hoegner, general counsel for the Bitfinex crypto exchange.

He also said the existing compliance practices are already the best in the industry. About the lawsuit, he just said Bitfinex “respects” the court’s order.

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Author: AnTy

Stellar (XLM) Price Analysis (April 19)

• The cryptocurrency is in a ranging market in the medium-term and uptrend in the short-term outlooks respectively.
• Patience is required at this period.

XLM/USD Medium-term Trend: Ranging
• Resistance Levels : $0.07, $0.08, $0.09
• Support Levels: $0.03, $0.02 $0.01

The crypto is in a range-bound market in its medium-term perspective. The bulls impulsive movement at $0.051 in the resistance area during yesterday’s session is lost as the bears return in a grand style.

A bearish candle at $0.050 in the support area opens today’s market. XLMUSD further drops to $0.049 in the support area as the bears take control of the market as at the time writing this article.

Price revolves around the two EMAs. The stochastic oscillator signal pointing in a parallel direction in the overbought region at 74% suggests indecision in the context of the market at the moment.

However, the price of the coin may likely encounter a trend reversal in the days ahead in the medium-term perspective.

XLM/USD Short-term Trend: Bullish


The coin is in a bullish trend market in its short-term outlook. The bull’s impulsive movement at $0.051 with its wick in the resistance area pushes the crypto into a bullish market during yesterday’s session.

Today’s 4-hourly session opens with a bearish pin bar at $0.050 in the support area. XLMUSD further drops to $0.049 in the support area.

Price is above the two EMAs which are fanned apart, this suggests strength in the context of the trend and in this case it’s an uptrend.

The stochastic oscillator signal pointing down at 78% in the overbought region is an indication that there may be a trend reversal in the market in the nearby days in the short-term.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

Cardano (ADA) Price Analysis (February 23)

• The cryptocurrency is in a bullish trend in the medium-term and ranging in the short-term outlook respectively.
• Patience is required at this period.

ADA/USD Medium-term Trend: Bullish

• Resistance levels : $0.07, $0.08, $0.09
• Support levels: $0.03, $0.02, $0.01

The cryptocurrency is in a bullish trend in its medium-term outlook. The bears increase in momentum drops the price down to $0.057 in the support area during yesterday’s session.

A bearish spinning top hammer at $0.058 opens today’s daily session in the support area within the range.

ADAUSD further drops to $0.057 in the support area. Price revolves around the two EMAs.

The stochastic oscillator signal is pointing down at level 14% in the oversold region an indication of downward momentum in the price of the crypto also the price may encounter a trend reversal in the nearby days in the medium-term perspective.

ADA/USD Short-term Trend: Ranging

The coin is in a range-bound market in its short-term outlook. The drop to $0.057 in the support area pushes the cryptocurrency into a range bound-market during yesterday’s session.

The 4-hourly session today opens with a formation of an inverted bearish candle at $0.058 in the support area.

The coin is initially down at $0.058 in the support area. Price hovers around the two EMAs’ indication of the undefined trend in the short-term.

The stochastic signal is pointing up at level 62% indicates that a trend reversal may likely occur in the momentum in price of Cardano in the nearby days in the short-term.

ADAUSD is in consolidation and trading between $0.057 in the resistance area and $0.043 in the support area within the range. A breakout at the upper resistance area or a breakdown at the lower support area may occur hence patience is required to allow this to happen before a position is taken.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

Stellar (XLM) Price Analysis (February 22)

• The cryptocurrency is in a bullish trend in the medium-term and ranging in the short-term outlook respectively.
• Patience is required at this period.

XLM/USD Medium-term Trend: Bullish
• Resistance Levels : $0.08, $0.09, $0.010
• Support Levels: $0.04, $0.03 $0.02

The coin is in a bullish trend zone in its medium-term outlook. The bulls lost momentum after an impulsive movement to $0.071 in the resistance area during yesterday’s session.

A bearish spinning top hammer at $0.071 opens today’s daily session in the support area within the range.

XLMUSD further drops to $0.069 in the support area. Price revolves around the two EMAs.

The stochastic oscillator signal is pointing down at level 16% in the oversold region an indication of downward momentum in the price of the crypto also the price may encounter a trend reversal in the nearby days in the medium-term perspective.

XLM/USD Short-term Trend: Ranging


The coin is in a range-bound market in its short-term outlook. The drop to $0.069 in the support area pushes the cryptocurrency into a range bound-market during yesterday’s session.

The 4-hourly session today opens with a formation of bullish doji candle at $0.07 in the resistance area.

The bears return gradually with an initial decrease to $0.069 in the support area. The bulls stage a return and increase price further to $0.071 in the resistance area within the range.

Price hovers around the two EMAs an indication of the undefined trend in the short- term.

However, the stochastic signal pointing up at around level 45% suggests that the price of Stellar may likely encounter a change in trend in the days ahead in the short-term.

XLMUSD is in consolidation and trading between $0.07 in the resistance area and $0.03 in the support area within the range. A breakout at the upper resistance area or a breakdown at the lower support area may occur hence patience is required to allow this to happen before a position is taken.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

OX Price Prediction: Long-term (ZRX) Value Forecast – June 16

  • ZRX/USD market has now been ranging around three important market’s lines observed at $0.30, $0.35 and $0.40 marks respectively.
  • The bulls need to sustain their momentum beyond the $0.40 upper range point to be in control of the trade.

ZRX/USD Long-term Trend – Ranging

  • Distribution territories: $0.45, $0.50, $0.55
  • Accumulation territories: $0.25, $0.20, $0.15

Most of the Japanese trading candlesticks formed about a week back during the trading sessions of the ZRX/USD market are features of higher highs and higher lows. The formation of the range price movements has dominated around $0.35 horizontal mark until the present. The SMA trading indicators are as well closely located trending towards the east direction.

Precisely, the 14-day SMA is a bit located over the 50-day SMA. And, they are both found not too far above $0.30 mark which has now been taken as the actual lower range line. The upper range line is located at $0.40 mark. The Stochastic Oscillators have wittingly touched range 60. That still suggests an on-going choppy market movement of the crypto-market.

It needs to be stated that three main range lines are now involved in the ZRX/USD market’s current ranging trend. At the current upper range line of this market, there are forces awaiting any further movements to the north. Therefore, the bulls need to sustain their momentum beyond the point if they will have to be in control of the trade.

0x:

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Azeez Mustapha