After days of seemingly positive signals and the actual launch of Bakkt without further delay, Bitcoin bulls will be perplexed at how easy it was for price to lose its support in the past 24 hours.
Bearish action according to short term charting seems to imply a confirmation of downward trends, as price now trades ever lower, slipping as low as USD 9,398 in the past hour as North American traders woke up (CoinDesk).
#Bitcoin price right now. The whole #crypto market is taking a little bump right now. Even though that #bakkt started with promising news for the whole #cryptomarket community. What do you think will the bottom be ? pic.twitter.com/gbJY3eo5G3
— MarketPeak (@MarketPeak) September 24, 2019
Not far behind are alts, dragged down from monthly highs only a few days ago. Ethereum leads the losers, languishing around USD 193 right now, but still not beyond the position from where it can still consolidate to USD 240, at least according to our own Ethereum technical analysis. Even coins that enjoyed the same joy like Litecoin has released its grip on USD 70, and EOS, which was among the best performers recently, is one of the biggest losers today, shedding over 11% in US dollar value.
No particular signs that could be responsible for this sell off, but the Bakkt response (or lack of) is probably some trigger for disappointment. But don’t worry, the long-term Bitcoin bulls are saying.
Just because people aren’t rushing to Bakkt doesn’t diminish its importance as a watershed development in the aggregated crypto markets. For many, demand or no demand, Bakkt is one of many that is slowly providing the legitimacy for Bitcoin, while providing potential investors a safe and relatively frictionless way to dip their toes into crypto investment.
Bakkt will be likely first a trickle and then a flood. The reality is that most regulated futures contracts get low adoption on day1 simply b/c not all futures brokers are ready to clear it, many ppl want to wait and see, the tickers are not even populated on risk systems, etc.
— Su Zhu 🦁 (@zhusu) September 23, 2019
Venture capitalist Luke Martin notes:
“Bakkt allow for a few things, but none require piling in on launch. •More robust $BTC borrowing/lending markets to form •Legitimize the asset •Ease manipulation concerns (oracle risk, basis risk) •Potentially disrupt some of OTC market functions.”
Another analyst, Joseph Young, predicts that trading volume has only one direction to go as brokers now make preparations to enter formally into crypto trading. He dismissed the lack of “fireworks”, but insists:
“But, Bakkt actually launching before the year’s end sets a good precedent entering 2020. As brokers get ready, it will likely see more volume.”
Meanwhile, Forbes reports that Bitcoin has now reached the lowest levels of volatility since April this year. Citing the numbers provided by crypto analysts Blockforce Capital and Digital Assets Data, analyst David Martin said we were looking at a 30-day reading of 36% volatility, down from an already low 60-day reading of 52%.
Perhaps more interesting was the fact that altcoins had gone in the opposite pattern, recording significant levels of volatility relative to Bitcoin. They are now as high as they ever have been this year in late June, when the crypto market reached its peak in 2019. Today, they are 70% higher in volatility than Bitcoin.
It’s good news for some bulls, who will insist that this low level of volatility can only mean consolidation before a severe push for new highs in 2019.
Crypto Briefing’s CEO says: “What we are seeing now, however, is that project viability is a much stronger factor in investor interest – so although investors could be looking for modest gains through altcoin speculation, the real story is that projects like Chainlink are finally bringing direct value to blockchain-based solutions.”
Online, there is still a stubborn prevalence of bullish influencers deigning to ramp up interest in crypto. One such influencer is the host of DataDash, Nicholas Merten, who says that even with Bitcoin’s disappointing run lately, it could still provide the momentum to push other crypto altcoins into massive gains.
He believes that dominance statistics (which are now recently going down for Bitcoin) is a clear path towards a trend shift for altcoin gains as the market “retests back toward bitcoin’s highs at USD 20,000”.
He draws out a coming term for Bitcoin and its influence on altcoins:
“The last two [altcoin cycles] that we had were at the end of the overall bitcoin cycle where bitcoin reached USD 20,000. The first one happened at the beginning of 2017 when bitcoin retested its highs at USD 1,100.”
Whatever the feelings today or for the next few weeks, Bitcoin enthusiasts should at least take comfort in some small victories.
According to Cryptonomist, 1 satoshi — the smallest possible unit of Bitcoin — is still worth more than at least three widely-used national currencies: the Iranian rial of Iran, the Vietnamese dong and the Indonesian rupiah.
This isn’t even taking into account several other national fiats of collapsing economies like in Argentina, Venezuela and South Sudan, where hyperinflation is rife.
Hold on to your Bitcoin!
Image Courtesy: Pixabay