- Bakkt first day of trading Bitcoin futures fails to magically crop up Bitcoin market.
- Bitcoin lacks fundamentals to sustain gains towards $10,000; possible retreat to $9,200 before the next sustained breakout.
The newly launched Bakkt Bitcoin futures delivered in digital currency failed to cause the anticipated stir in the market. I guess it was wrong to think that on day one, the new product will work magic on Bitcoin price. Because instead of a comeback above $10,000, Bitcoin retested last week’s support area at $9,600. At the end of the launch, Bakkt said that it has recorded 72 BTC in the sale of monthly contracts worth more than $600,000. This volume is expected to increase over time as institutional investors dive into the regulated product.
XBT/USD, on the other hand, is stable slightly above $9,700 after a minor correction from Monday lows. Most technical levels are strongly bearish amid a desire by the buyers to see the price above $10,000. The moving average convergence divergence (MAC) is not only stuck in the negative zone, but it is also extending to lower levels (currently at -121.1). A negative divergence of the MACD says that the sellers’ grip is still strong. This means that for significant correction north, the bulls must put in the extra effort.
XBT/USD 4-hour chart
The four-hour chart shows the price below the moving averages. The 50 MA has crossed under the longer-term 100 MA at $10,268 could see a lower consolidation for the crypto assets. Besides, the 50 MA will limit upward movement at $10,065 while the 100 MA will hinder growth at $10,184.
Bitcoin volatility is still low despite the lower correction. This means that there are limited trading opportunities. However, the low volumes suggest that correction towards $10,000 will be an upside task. Besides, even if it happens Bitcoin will not be able to sustain the growth. For now, $9,200 is possible entry zone likely to results in profits amid fresh demand to push Bitcoin above $10,000 and $10,400 hurdles respectively.
XBT Key Levels
Spot rate: $9,730
Relative change: +44