According
the reports from cryptocurrency analysts, the cryptocurrency market has been on
the increase in both the daily volume of bitcoin and the rest of the
cryptocurrency market which has led to the suggestion that the overall trading
activity in the market is rising.
While some stated that the
minimal impact on the bitcoin price despite the large movements of alternative
cryptocurrencies show a small inflow of capital into the crypto market, the
general sentiment regarding the asset class has improved.
According to one technical analyst, for the first
time since the bull run in late 2017, a technical indicator called Bollinger
Bands is holding above the 30 moving average (MA) level, which often
signals a positive upside movement.
CAN BITCOIN ENGAGE IN
STRONG MOVEMENT?
Throughout
the past three months, bitcoin has struggled to move out of a tight range from
mid-$3,000 to $4,000.
On
two occasions wherein bitcoin breached the $4,000 mark, the dominant
cryptocurrency retraced fairly quickly back to the $3,900 and $3,800 range.
For a breakout above the $4,000 to hold, several technical
analysts including DonAlt have emphasized that it is
important for the asset to test key resistance levels, like $4,300 and $4,600.
“Volume isn’t
what will convince me that the bear market is over, a bullish market structure
along with a break of at least $4.6k (Favorably $6k) is. It’s interesting that
we’ve had so many altcoin pumps while the general market cap hasn’t really
changed. That makes me think there is very little new money coming in,” the
analyst said.
The
$4,300 level could be crucial in the near-term because as one cryptocurrency
trader explained, there are a relatively large number of short contracts
stacked up in the $4,200 to $4,300 range.
If
bitcoin initiates an optimistic price movement above $4,300, it could trigger a
short squeeze and fuel its near-term momentum.
$BTC 3D is riding/holding above the 20MA on the @bbands, for the first time since end of 2017 Bull Trend— Crypto Thies (@KingThies) March 17, 2019
👌 pic.twitter.com/wL7dGBr7hG
On March 17, following a
strong week for alternative cryptocurrencies and tokens, the cryptocurrency
market retraced slightly from $141 billion to $139 billion, by about 1.4
percent.
The
retrace was minimal considering the gain of the cryptocurrency market
throughout the past 7 days and the market could continue to see an extended
period of accumulation if bitcoin can maintain its momentum in the short-term.
Some cryptocurrencies such as Enjin Coin, which experienced an
impressive 80 percent rally against bitcoin earlier this month due to its
reportedly high-profile partnership with Samsung’s Galaxy s10
crytpo wallet recorded large gains on the day
Someone very clearly defending shorts in this range. Going to get ugly for them if 4300 breaks...$BTC pic.twitter.com/A1XSJ4yjL0— Flood [BitMEX] (@ThinkingUSD) March 18, 2019
POTENTIAL BAKKT DELAY
Based on reports, the launch of Bakkt, the highly anticipated
bitcoin futures market operated by ICE, the parent company of the New York
Stock Exchange, will most likely not be able to launch its futures exchange by
the first quarter in 2019.
Even until late February,
CFTC’s Division of Market Oversight was reportedly reviewing the proposal of
Bakkt and as such, the earliest Bakkt could launch is in the second quarter of
this year.
Throughout the past 12
months, Bakkt has been considered as one of the fundamental catalysts that
could contribute in institutionalizing the cryptocurrency sector.
As government enforcement
defense and securities litigation attorney at Kobre & Kim Jake Chervinsky
said in November 2018, Bakkt may be going through months of negotiations with
the CFTC.
“Consider the process that CME & CBOE went through to get
approval for their bitcoin futures last year. Both of them ended up
self-certifying, but only after *months* of negotiations with the CFTC &
changes to their products,” he said.
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