Bitcoin Bears Back on Bakkt Launch as Markets Tumble Again
Around $6 billion has been dumped out of crypto markets over the past few hours as the bears return again. Coincidentally it has happened again, right after Bakkt launched more institutional investment products for Bitcoin.
Bitcoin Barrels Towards $7k
BTC charts were looking positive during late trading yesterday but the Asian session changed all of that. A brief spike above $7,600 was followed by a massive dump back to $7,270 according to Tradingview.com. Bitcoin is currently trading in the $7,350 range but analysts are growing increasingly bearish.
The wicks up have been a bearish test of resistance that was too strong to overcome and BTC is currently battling at the point of control according to analyst Josh Rager.
“Bitcoin is battling the POC at $7315 area and so far holding steady. Below that we’d want to look at the low of the value area – $7100s (sweep of low $7080)”
He added that the asset is still ranging in what could be an accumulation area. Yesterday’s mini-survey on CT resulted in a very even split of the market sentiment from the 2,000 respondents though 53% were bullish.
The bottom in 2018 consolidated around or below $4k for almost four months in what was a painfully chilly crypto winter. If this really is the new bottom then BTC could range in this channel until February next year when halving FOMO revives it.
No Favors From Bakkt
Coincidentally this latest drop comes just after Bakkt launched more institutional investment products. The last time this happened was in late September when crypto markets dumped $10 billion following the launch of its BTC futures contracts.
Today markets are down over 21% from those levels and poised to drop below $200 billion again as the bears gather steam. There has been a lot of negativity towards Bakkt from the crypto community following yesterday’s launch of BTC monthly options and cash-settled futures in Singapore.
Many feel that these products are providing more tools for institutions to suppress the price of the digital asset. Cash settled futures do nothing for Bitcoin as it is instantly liquidated back into markets on contract expiry.
Day one of trading started well with over a thousand cash-settled contracts opened at ICE Futures Singapore according to the official Bakkt channel.
Elsewhere on Crypto Markets
As usual, the altcoins have followed their big brother again in a tediously predictable pattern. The $6 billion market dump has seen no survivors but some are suffering more than others.
Ethereum has lost 2% to fall back below $150 again while XRP and BCH have done the same. Following an impressive weekend of gains Tezos is dumping hard today with a 6.5% slide and Cosmos is not far behind.
Today’s altcoin suicide though is MATIC which has just been obliterated 70% an hour or so ago.