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Bitcoin Price Analysis: High Volumes and Shrinking BTC/USD Trade Range Positive for Price

It’s not what maximalists want to see but for institutions to flock in then regulators must be in the picture. This is part of the reason why the launch of Bakkt Daily Bitcoin futures has been put off to Jan 24, 2019. Hopefully, if all requirements are met and goes live in Jan 2019 then BTC/USD prices would print higher recouping this year’s losses.

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Even in a system that is meant to thrive without oversight or government intervention, regulatory involvement is to some degree necessary as the technology steady. It is more so important when money is involved.

Interesting Read: Is CoinBase Trying to Disrupt Bitcoin’s Reserve Asset Status by Listing New USDC Pairs

Investors were expecting Bakkt Bitcoin Daily Futures to roll out in the next two weeks but with the regulators at play, ICE is now pushing their formal launch to Jan 24, 2019. Citing sharp interests from companies and the infrastructure needed for smooth execution, the CEO of Bakkt Kelly Loeffler said this delay shall “provide additional time for customer and clearing member on-boarding prior to the start of trading and warehousing of the new contract”.

Also Read: BlackRock to Wait Until Crypto Market is Legitimate before Offering ETF

ICE through Bakkt have ambitious plan to ensure that institutions as well as approved retail investors have a robust, compliant and transparent platform leveraging Microsoft’s cloud that can easily handle all pre-and post trade requirements. By extension this mean once operation kick-off, there shall be no margin trading. Buying and selling of cryptocurrencies shall be collateralized.

BTC/USD Price Analysis

Weekly Chart

BTC/USD Price Analysis

Though BTC/USD prices are struggling against waves of sell pressure dropping 30 percent and 15 percent in the last week and day, prices could stabilize today. Notice that we have a small, lower wick indicating bulls in lower time frame.

But since prices are trading within a bear breakout pattern of last week, traders need a lot of convincing for them to change their bear preview. It is also likely that the capitulation of the last two days did cause an imbalance and bulls might work towards correcting that.

Nevertheless, from candlestick alignment, it is highly likely that BTC/USD bulls will thrust prices back towards the $5,000–$5,500 zone before bears pick up driving back price lower. However, if we see prices rocketing past $5,800 or this week closing with a long lower wick then we would most likely have a solid bottom in place.

Daily Chart

BTC/USD Price Analysis

Cementing our brief bullish skew are yesterday’s high volumes—92k against 72k of Sep 19 and tight trading ranges–$800 versus $600. With a visible lower wick, it is likely that buyers will shore prices and lead to a consolidation in coming days as equilibrium is struck. Because of this we recommend both set of traders to take a neutral stand and even buy in on every dip with first targets at $5,000.

All Charts Courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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