Bitcoin price prediction: Bakkt launch triggered September’s plunge – Confluence Detector


  • Binance Research points a figure to Bakkt exchange for causing September’s crash in the crypto market.
  • Bitcoin bulls push for recovery from September’s dive but the upside is still limited.

Two of the most notable events in September were the launch of Bakkt physically settled Bitcoin futures and the unexpected bearish momentum across the crypto market. The futures product went live on September 23 with a promise of revitalizing the institutional investors’ interest in the cryptocurrency market. In fact, the CEO of the exchange Kelly Loeffler said this was “a milestone for the industry.”

However, following the launch, the cryptocurrency market dived extensively led by Bitcoin which explored lows around $7,700. This had experts in the industry working hard to demystify what caused the crash. One report by a JPMorgan strategist claimed that “the Bakkt flop is directly linked to the steep cryptocurrency market crash.” Similarly, a report conducted by Binance Research explained that Bakkt could have been directly connected to the plunge in the price of cryptocurrencies.

“One possible reason, explaining Bitcoin’s price drop, could be the general indifference towards the much-hyped release of Bakkt, as BTC prices dropped over $1,000 a day or so after trading began… Short-term wise though, Bakkt’s disappointing start seems to have been a contributing factor to the recent price decline.”

Bitcoin confluence detector levels

fxsoriginal

Bitcoin price pushed from the lows posted yesterday around $7,700 to intraday highs on Tuesday at $8,518. The price is currently holding ground at $8,478 following a 2.1% correction and relative change of +172.

The confluence tool clearly shows the immediate resistance at $8,499. Contributing to the resistance here is the previous high 15-minutes, Fibonacci 23.6% one-month, and the Bollinger Band one-hour upper.

Despite the recovery witnessed in the last 24 hours, the upside is still limited at $8,675 as shown by the Fibo 38.2% one-week. Higher movement above this level will come face to face with the resistance at $9,026 in preparation for an ascend towards $10,000.

On the downside, BTC is strongly supported by various key levels starting with $8,411 highlighted by the previous high one-day and the simple moving average (SMA) one-day. The most significant support is the level at $8,147 which is home to the SMA ten four-hour chart, Fibo 38.2% one-day and SMA 100 15-mins.

More confluence levels

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Cardano Price Forecast: ADA targets 900% bull rally, but it must clear $0.33 first

Cardano had a significant rally towards $0.355 at the beginning of 2021. After a notable dip to $0.228, bulls bought it and managed to push Cardano price to $0.33 again before a small rejection.

More Cardano News

Ethereum price aims to flush out doubters before the ultimate breakout to $2,000

Ethereum bulls bought the dip on January 11, pushing the digital asset from a low of $915 towards $1,256. The smart-contracts giant has been outperforming Bitcoin in the past 24 hours despite the negativity seen on social media.

More Ethereum News

XLM Price Prediction: Stellar consolidates ahead of a 30% move

XLM price trades at $0.291 at the time of writing after a healthy consolidation after hitting a 2021-top at $0.411. There is a high chance that XLM is about to see a massive breakout or breakdown within the next 24 hours.

More XLM News

Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. The panic sell-off was stopped on its tracks at the 26-EMA on the daily chart as bulls quickly bought the dip and created a V-Shape recovery pushing BTC towards $40,100 again. 

More Bitcoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. 

Read the weekly forecast

BTC

ETH

XRP