(Newswire.net — August 20, 2019) — An announcement was made on Friday by Bakkt exchange that they will be giving physically-settled bitcoin futures probably on the 23rd of September. Its price has sky-rocketed by $1,000 and also taking down the bearish setup on intraday charts that was seen last week.
The gains are expected to reach numbers like $11,000 since the hourly chart is providing us with information that a bullish continuation pattern has emerged. However, the weekly chart is calling a much bigger pullback to $9,000 with moving averages (MAs) making a bearish crossover that hasn’t been since February. What is needed for a complete bullish revival is a weekly close that exceeds the $12,000 mark.
Even though Bitcoin has gained $1,000 after the announcement by Bakkt exchange, that it has a right to offer bitcoin futures a lot of key resistance is present. Bitcoin (BTC) had a usual bid of $9,700 in United States trading hours on Friday. Since then, it has reached highs that are above $10,750 in the early hours of 19th of August.
What’s important is that the rise above the $10K mark took place on 16th August after a report by CoinDesk shed light that the Intercontinental Exchange’s subsidiary Bakkt had an approval that made it possible to launch their much-anticipated platform for daily and monthly Bitcoin Futures.
To this day, the Chicago Mercantile Exchange bitcoin futures were cash-settled, and now with this change in policy Bakkt’s bitcoin futures will be physically settled. In other words, the parties will receive bitcoins form Bakkt’s Digital Asset Warehouse when the end of the contract period comes. Furthermore, trading on Bakkt won’t be reliant on unregulated spot markets for settlement prices.
Many people, like the cryptocurrency analyst Scott Melker, believe that this move by Bakkt and its physically-delivered futures will pave way for the institutional money and it is expected to be a long-standing bullish development for bitcoin.
Futures which are physically-delivered actually obligate an actual purchase of bitcoins, and like everyone else, Melker agrees that this is an enormous development. Furthermore, it is no secret that price discovery in new physical delivery markets will build more confidence in Bitcoin prices.
However, some strongly state that this increased institutional volume might not mean that stronger buying pressure is present. A very distinguished cryptocurrency analyst @CryptoNekoZ made a tweet that said: “Volume is volume, don’t express your bias toward it”.
At the same time, Joseph Young, a financial analyst, and tech journalist also tweeted that Bakkt’s launch has been priced into the market. And the markets are reacting very positive to the Bakkt news, considering the price has rocketed by $1K.
For now, BTCs are trading at $10,700 on Bitstamp and rise to $11,000 is to be expected. It could, however, flunk down since the odds are stacked against the bulls, according to some technical charts. So if you like gambling and betting on football. Still, you can buy BTC’s and sell them after the price goes up.
BTC had a very high-volume ascending triangle breakout in the early hours of 19th August. Since last week’s rally lows of $9,500, chances are big that it has created big room to give rise to about $11,000 indicated by the bullish continuation pattern. Unfortunately, gains have only reached the amount of $10,750 for now.
Last week, as mentioned above BTC fell down a whopping 10.49 percent making the case a lot stronger for a very deep pullback put forward by preceding week rejection that was above $12,000.
A bearish lower high was created by the 14-week relative strength index. Also, for the first time since January, 5-week moving average (MA) had crossed below the 10-week MA.
For now, 5-week MA shows a $10,610, and the 10-week one shows a $10,691. This only means that there is a lot less resistance on the downside shown by the bearish crossover. The MA convergence divergence histograms are still giving us lower highs that are above the zero lines, which means a weakening bullish momentum.
In conclusion, fall back to $9,000 is still very likely. However, if the prices on a weekly close are above $12,000, the outlook would turn bullish.