Bitcoin throws $ 10,000 back in support of the Bakkt launch
Prior to the launch of Bakkt's Bitcoin (BTC) futures, bears have continued to assert control over the cryptocurrency market. Ouch.
From the time this was written, the Bitcoin price has dropped to $ 9,900, so the cryptocurrency is below the $ 10,000 key for the last time in a few weeks.
This may be a precursor to a larger move that will occur over the coming days, as this new market has shown a characteristic non-volatility during the recent trading sessions.
Related Readings: Bitcoin Investor: We'll Never See $ 10K Again After the Next Cycle Low
Bitcoin looks weak
According to a number of analysts, Bitcoin appears to be falling further. As prominent trader Scott "The Wolf of All Streets" recently pointed out, BTC's four-hour chart looks absolutely horrendous, sporting seven red candles in a row, each with massive downside, which implies downward pressure.
My farewell gift before I go out this Saturday night ̵[ads1]1; a ridiculous 4 hour chart where every single candle has a downpour. $ BTC pic.twitter.com/EG6GpFDbrV
– The Wolf Of All Streets (@scottmelker) September 22, 2019
That's not all. Chonis noted that Bitcoin's daily chart has just shown a number of bearish technical indicators: a 50-day moving average and 100-day moving average of bear crosses, a bearish expansion between two short-term moving averages and a potential loss of the lower Bollinger Band.
To make matters worse, Bitcoin is currently in the midst of a giant bear fractal.
#BTC $ BTC #BTCUSD
You know some of you are not going to like this, let me first say that I am still bullish on #Bitcoin but this does not mean I cannot post a bearisch chart.? Just something to keep in mind. pic.twitter.com/FlJOHPCzdK
– ?????? ? (@ 888Velvet) September 20, 2019
As per previous reports from NewsBTC, an analyst estimated that BTC lost support from the upward trend line for a long-term head and shoulders pattern, just as it did in 2018.
History repetition would see Bitcoin approaching the rapidly declining trend line, which is currently around $ 11,000, before being rejected. Should this rejection occur, Bitcoin could take a strong tumble, potentially entering the $ 8,000 region and below.
Have No Fear, Baked is Here
While the charts can be seen as upsetting, it is important to note that basic backgrounds are completely different to Bitcoin compared to the time and now. Not only is the macroeconomic stage favoring alternative assets such as Bitcoin, but an institutional investment catalyst is right on the horizon.
On Monday, Bakkt launches its physical deliverable futures contracts (BTC). In a recent tweet Fundstrat Global Advisors Tom Lee said he is "positive to Bakkt" and the stock exchange's ability to "improve trust in crypto institutions".
Related reading: Model: Bitcoin (BTC) Price to increase 100% to $ 20,000 by May
Indeed, with the support of one of the most prominent and important financial institutions and legendary companies (Microsoft, Starbucks, etc. ), Bakkt is likely to pull in companies that have previously hesitated about whether Bakkt will be able to help Bitcoin breach the fractal or throw aside the bearish technologies is not clear. But it should at least lead to long-term growth of this market.
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