Bitcoin has finally broken through the significant $8,000 price level that has proven to be particularly strong resistance for the past few weeks. Yesterday evening a small burst of volume pushed the Bitcoin price from $7,992 straight up to $8,161 within 15 minutes. It has since leveled out and has been trading just above $8,100 throughout the day.
Although the move represents less than a three percent gain, the psychological break above $8,000 could be pertinent in bringing buyers back to crypto. Bitcoin has broken above $8,000 twice already this year but both times it fell back below soon after. However, the question is – will it hold and could this be a ‘third-time lucky’ event?
What are the analysts saying?
Barry Silbert, the head of possibly one of the most influential groups in crypto, the Digital Currency Group (DCG), recently noted his positive outlook for Bitcoin going forward. Speaking to Bloomberg, Silbert detailed the often-cited ‘rollercoaster’ like movements of Bitcoin and its previous four recoveries after making similar 80 percent losses.
“If you look at the price for Bitcoin, it looks like perhaps we’re coming out of the crypto winter and we’ve entered the crypto spring,” he concluded. In the interview, he also discussed how the younger generation is looking for more advanced methods of investment and the likelihood that $68 trillion in inherited gold stocks could move into the crypto space.
Rob Sluymer, a technical analyst at Fundstrat Global Advisors, the crypto firm co-founded by Tom Lee, also sees more gains for Bitcoin in the future. He says the firm now expects Bitcoin to make another run for $9,000 following evidence that “another upside attempt appears to be developing.” In the interview, also with Bloomberg, Sluymer points to how the momentum of Bitcoin’s relative strength index is beginning to turn upward and suggests that now is a good time for investors to accumulate more assets.
Bitcoin Price Analysis
Bitcoin has not only managed to break above $8,000 but has continued all the way through $8,100. This means resistance has now been confirmed at $8,200, the 23.6% Fibonacci retracement and 1-day Bollinger Band middle line confluence point.
If a correction below $8,000 occurs, support should be found around previous resistance at $7,800 and at the 1-day Bollinger Band lower boundary of $7,450. The relative strength index (RSI) remains neutral at 54.7 but the MACD level at 157.22 suggests a possible retracement below $8,000.
Roubini on BitMex: “95 percent of all bitcoin transactions are fake”
Anti-crypto personality Nouriel Roubini has lashed out at BitMex exchange following the recent announcement that the exchange had achieved US$1 Billion open interest on the Bitcoin perpetual swap contract, for the first time.
Roubini, who always has a lot of negative things to say about the cryptocurrency industry, took to Twitter to express his discontent about the recent record set by BitMex.
BitMex announced that the exchange had achieved US$1 Billion open interest on the Bitcoin perpetual swap contract, for the first time. Roubini commented saying “How can one believe ANY of these figures when 95 percent of all bitcoin transactions on a typical exchange are fake? Fake-coins, shit-coins, fake-transactions, fake-pricing. The only true thing in crypto space is manipulation, pump n dump, front-running, wash trading, etc…”
The two will be meeting in Taipei on July 3 at the Asia Blockchain Summit 2019, where they will have an open debate.View image on Twitter
ErisX goes all hands on deck to launch a Bitcoin Futures market
ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.
ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.
The CSO explained the benefit of this, stating,
“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “
Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,
“… so there is some efficiency in terms of managing collateral, if you don’t have assets on multiple platforms, it can all be in our clearinghouse.”
Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,
“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”
Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.
Bitcoin’s fantastic run contributes to a new milestone for BitMEX
The cryptocurrency market has been rife with news about Bitcoin, the world’s largest cryptocurrency, and its massive bullish movement. In a matter of just 3 months, Bitcoin has recovered from the bearish zone near the $4000 market, to currently trade near the $12,000 zone.
This price rise has prompted popular figures in the cryptocurrency industry to voice their opinions about the king coin and where it could go from its current market situation. Alex Kruger, a popular economist and analyst, is one of them and he tweeted,
“The hourly bar that marked tonight’s bitcoin $12,972 top had the highest hourly volume in Bitmex’s history. When such high volume prints come after an extended run, they often mark a local top. One could appreciate an intra-day blow-off top on the 5 minute as well.”
Kruger’s tweet comes in the wake of information that suggests that Bitcoin’s trading volume on the popular cryptocurrency exchange had skyrocketed over the course of the past few months. It was spotted in January of this year, when the trading volume found it difficult to breach the $1 billion mark. However, the present price hike has contributed to the volume spiking by a factor of 9 to amass a trading volume of more than $9 billion.
Kruger’s tweet also had comments from other Bitcoin enthusiasts, with @rufus666, saying,
“Gonna wait for Friday when these CME shorters gonna dump the corns they had to buy on spot after weekend rallies to hedge their positions.”
BitMEX had touched another milestone recently after the exchange clocked in a trading volume of a whopping $10 billion. This feat was also marked with requests from the community, asking BitMEX to include margin trading to its fold like the Changpeng Zhao-led Binance.
At press time, Bitcoin was trading at $12,595, on the back of a significant 11.19 percent growth over 24 hours. The cryptocurrency held a market cap of $223.96 billion, and a 24 hour trading volume of 32.23 billion.