Bull Reversal Signs

Bitcoin clears key hurdle as Bakkt futures volume hits record high

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November 28, 2019 Bakkt’s bitcoin futures contracts continue to see growth, reaching a new high on Wednesday.  Trading volume of the ICE subsidiary’s monthly futures hit 5,671 contracts – a 148 percent increase from Tuesday's figure of 2,290. There’s a general consensus in the market that the rise in trading volumes on Bakkt represents growing institutional interest.  Volume, however, does not reveal the intentions of traders. Futures can be utilized to create both bullish (long) and bearish (short) bets. So, the rise in volume is not necessarily a bullish development.  That said, Bakkt's U.S. futures are physically settled and require the actual purchase of bitcoins, as opposed to CME's product, which is cash settled. As a result, many analysts including trader Alex Kruger are calling Bakkt's growth a positive development for the bitcoin market.  It’s worth noting that 17 bitcoins were delivered in November and 16 in October. With volumes growing exponentially, the delivery figure may rise sharply next month. "I wouldn't be surprised if 100 bitcoins were delivered in December," Kruger said Wednesday.  The spike in Bakkt volume comes amid heightened volatility in the bitcoin market. The cryptocurrency’s spot price fell from $8,100 to $6,515 in the five days to Nov. 25 before rising to $7,650 on Wednesday in what looks like a short-term bullish trend change. It’s not clear if Wednesday’s surge in futures was investors going long or short on bitcoin, since Bakkt doesn’t provide data on market positioning. Stage Set for Corrective Rally BTC: Price: $7,470 | Market cap: $136 Billion | 24-Hr Volume: $21 Billion Trend: Bullish Bitcoin jumped 5 percent on Wednesday to print the biggest single-day gain in four weeks.  The convincing move above $7,400 activated twin bullish cues on the 4-hour chart: an upside break of a descending trendline and an inverse head-and-shoulder breakout. The latter has opened the doors for $8,200 (target as per the measured move method).  An impending bullish cross of the 50- and 200-hour moving averages also indicates the path of least resistance is to the higher side. The cryptocurrency looks set to test resistance at $7,800 in the next 48 hours or so. A violation there would expose $8,200. The short-term bullish case would weaken if prices fall below Wednesday’s low of $6,848 on high volumes. Long-term trend: Neutral Bitcoin has found acceptance below the 50-week MA – a cause of concern for the bulls. Historically, the cryptocurrency has suffered deeper losses after falling below the key average.  Even so, the outlook remains neutral, as the miners’ reward halving, usually a price-bullish event, is due in May 2020. With BTC looking oversold on the daily chart, a notable recovery ahead of the supply-cutting event can’t be ruled out.  The outlook as per the weekly chart would turn bullish only if and when prices break higher from the five-month long bearish channel.  Read Analysis MaidSafeCoin Rising On Thin Air MAID: Price: $0.12 | MCAP: $54.4 million | 24-Hr Volume: $369,690 Short-term trend: Neutral MAID is up 14.83 percent Thursday after breaking from a falling wedge pattern on the daily chart. Maidsafe is a project for a "decentralized internet," created in 2006 by Scottish engineer David Irvine. MaidSafe’s concept predates bitcoin by several years, although it’s still in its alpha phase. Low volume and weaker momentum, as shown by the daily RSI, demonstrates mixed sentiment, with the most likely direction in price continuing to be south until a firm close above $0.14 occurs. Long-term trend: Bearish MAID's long-term market structure is currently suppressed beneath the 26-period exponential moving average, which has capped prices for 72-days. A firm close above that line, as well as prior price highs around $0.1226–$0.14, would bode well for a bullish reversal in the long-term. Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. Copyright © 2018 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences or unsubscribe from this list