Bitcoin skepticism continues to be a thing and this has, unfortunately, struck the global cryptocurrency market as well. January and February were particularly poor months in terms of prices and performances, driven by the sharp decline in the cryptocurrency’s value (right now, 1 BTC trades for about $8400). Besides many blows to the regulatory market and operators, now the Bitcoin exchange websites are reporting a staggering nosedive in visits per month.
February was not a good month if you’re operating a major bitcoin and/or cryptocurrency exchange – the web traffic of the most vital websites of this kind rose during December and part of January, only to plummet significantly in February. On average, the visits have fallen by half.
Here is the breakdown for some of the most visited cryptocurrency exchange websites: Coinbase, which had 169.5 million visits in December 2017, only had 63.1 million visits in February – a 49% decline from January’s 123.5 million. Kraken has it even worse – it fell by 56%, from January’s 31.7 million to just 13.8 million in February. Similarly, Binance dropped by 54%, from 191.5 to 87.3 million.
“with possibly the only exception being Litecoin who is doing well”
These numbers are a symptom of the ongoing distrust in cryptocurrencies, particularly Bitcoin who was at the center of much turmoil since it’s stellar 2017. Recently we’ve reported on another big decline, that of Bitcoin’s plummet to a two-year low. Why are people, by the looks of it, losing interest in the cryptocurrency exchange? There are a couple of factors that could’ve led to this. Firstly, the very poor joint price performance of all cryptocurrencies during January and February (with possibly the only exception being Litecoin who is doing well). Secondly, the impossible rise in the value during the last months of 2017 prompted too huge a number of investors to start pouring money in the Bitcoin ecosystem, which set a bar that could hardly be repeated. Consequently, it may be that the aforementioned decline in Bitcoin transactions may have been caused by the smaller volume of adoption and usage. The only upside to this emptying of the market is that fees have been brought down.
Bakkt Bitcoin Futures Will be Listed on ICE Futures Singapore
The impact of Bakkt’s Bitcoin futures remains to be determined. Despite the overall interest not being optimal, the company will expand its presence to Singapore.
Many people still believe Bitcoin futures trading will be beneficial to the cryptocurrency industry.
BAKKT BITCOIN FUTURES COME TO SINGAPORE
Others see it as another way for the naysayers to drive the value per BTC down when they feel like it.
Bakkt is one of the multiple Bitcoin futures trading providers today.
Their core product is very different, however, as these futures are settled in cash.
Despite a somewhat meager launch in the US, the company will receive a helping hand.
ICE Futures Singapore will begin supporting the Bakkt Bitcoin Cash Settled Monthly Futures Contract soon.
It is expected this trading vehicle will go live on December 9, 2019, barring any last-minute delays or mishaps.
This is another way for Asian investors to be exposed to the volatile Bitcoin price trends.
For ICE Singapore, it is another powerful investment vehicle capable of leveraging its regulated market.
The first question that comes to mind is how this will affect the value of Bitcoin in the weeks following this product launch.
Asia has seemingly been rather negative toward cryptocurrencies in many different ways.
It is certainly possible that the products by Bakkt will only drive the value down even further, at least under the current financial and geopolitical conditions.
It will also be intriguing to see if Bakkt can note a more proper trading volume in Singapore compared to its US launch.
Bitcoin Price Dumps Can Be Identified by One Simple Method, Notes Analyst
The Bitcoin price often creates repetitive patterns that can be identified to predict future price movements. One such pattern is created by a long bearish upper wick and a moving average (MA) rejection.
The Bitcoin price has been known to be very volatile. Therefore, when trading, it is important to use several methods to reduce your risk — such as using stop losses, low leverage if you are margin trading, and proper trade sizing.
However, especially in the case of stop losses, significant fluctuations in the form of wicks can often trigger them. In this case, the price moves very quickly in one or the other direction before swiftly reversing. This effectively stops out traders from their current position.
However, wicks create several important patterns, which when used along with indicators can help in predicting future prices.
Cryptocurrency analyst and trader @cryptopeppa suggested that a pattern of upward wicks an a rejection once they reached the 100-hour exponential MA suggests that the Bitcoin price will decrease.
Let’s see if we can find more of these patterns and if they can be successfully used to predict the Bitcoin price.
Bitcoin’s Wick Movements
In the pattern, the Bitcoin price first initiates a downward move. After some consolidation, it begins an upward move — which is ultimately unsuccessful and leads to the creation of a long upper wick. The wick stops once it reaches the 200-hour moving average (MA) and an important Fib level. In the case below, it was the 0.5 Fib level.
Additionally, after the wick, the Bitcoin price made two more attempts at breaking out above the MA. However, both were unsuccessful. It is imperative that the price reaches a close above the MA for the reversal to be initiated.
Another similar pattern transpired on November 17. After a decrease, the Bitcoin price made an attempt to retrace upwards. The first attempt ended once the price reached the 100-hour MA and the 0.618 Fib level, similar to the previous move.
However, the Bitcoin price made another attempt, which retraced fully to the pre-breakdown prices. However, the movement also ended with the creation of a long upper wick.
Another full retracement occurred in September.
This time, after a decrease, the Bitcoin price made a double top at the 0.618 level. This was below the 100-hour MA.
Afterward, it made an attempt at moving above the MA, which ended in a similar wick. This decrease was more easily identified since it was combined with a bearish divergence in the RSI.
To conclude, wick rejections at a significant MA do not necessarily mean that the Bitcoin price will dump. Previous market structure plays a big role in determining if they will.
A rapid price decrease followed by an attempt at a reversal, in which a wick is created a significant Fib level and MA, very often leads to a dump. The potential for further decreases is strengthened by the presence of a bearish divergence in the RSI.
BTC/USD Technical Analysis: Nice bounce off the intraday resistance point
- In another heavy day for BTC/USD technical analysis still plays out.
- Bitcoin is now down 3.88% in the session after 7K was retaken to the upside.
BTC/USD 10-Minute Chart
On a day like this, it is hard to analyse Bitcoin on an intraday perspective but the support and resistance levels seem to be holding.
For the second day in a row, BTC/USD suffered from heavy losses and dropped another 3.88% adding to Thursday’s 5.77% fall.
7,501.46 was a support zone early in the EU session and as price moved higher toward the level the bears came back in and shorted Bitcoin.
Now bulls will be watching the consolidation high of 7,215.49 to see if the same thing happens to support upside trade.
On the daily charts, the trend is still heavily bearish but some Bitcoin analysts have noted there is often a downside flush out before a move higher.
This pattern was noted on both the 28th July and 23rd October this year.
|Today last price||7319.3|
|Today Daily Change||-296.49|
|Today Daily Change %||-3.89|
|Today daily open||7615.79|
|Previous Daily High||8114.54|
|Previous Daily Low||7393.27|
|Previous Weekly High||9137.8|
|Previous Weekly Low||8369.16|
|Previous Monthly High||10484.7|
|Previous Monthly Low||7300.54|
|Daily Fibonacci 38.2%||7668.79|
|Daily Fibonacci 61.8%||7839.01|
|Daily Pivot Point S1||7301.19|
|Daily Pivot Point S2||6986.6|
|Daily Pivot Point S3||6579.92|
|Daily Pivot Point R1||8022.46|
|Daily Pivot Point R2||8429.14|
|Daily Pivot Point R3||8743.73|