• Markets cheer Bakkt's introduction of crypto futures on Friday.
  • Bitcoin still down more than 10% for the week despite latest recovery.
  • $10,000 continues to act as strong support in near-term. 

After slumping to its lowest level of August at $9,467 on Thursday, Bitcoin (BTC/USD) staged modest recovery and advanced above the critical $10,000 mark. Although Bakkt's announcement of the launch date of its highly anticipated crypto futures platform allowed the sentiment surrounding major cryptocurrencies turn positive on Friday, Bitcoin's rally remained short-lived. As of writing, the BTC/USD pair is posting modest daily losses at $10,300. For the week, the pair is still down more than 10% despite this latest rebound. 

Bakkt cleared to launch Bitcoin futures

Owner of the New York Stock Exchange (NYSE), Intercontinental Exchange Inc, said on Friday that it won the approval for its Bakkt unit to introduce futures that will pay out in Bitcoin starting September 23rd. Commenting on this development, “We believe that the availability of a benchmark that can be referenced globally will create confidence in the true price of Bitcoin,” Kelly Loeffler, Bakkt’s chief executive officer, told Bloomberg in an interview. “It’s an important step in creating more trust.”

Technical outlook

Looking at the technical picture, the Relative Strength Index (RSI) on the daily chart continues to move below the 50 mark, suggesting that buyers are struggling to take control of the price action. Additionally, both the 20-day Moving Average and the 50-day Moving Average stay above the price, confirming the near-term bearish outlook.

On the downside, $10,000 (psychological level/Fibonacci 61.8% retracement of June rally) remains as tough support. With a weekly close below that level, the sell-off could drag Bitcoin to $9,500 (Aug. 15 low) and $9,000 (psychological level/Jul. 17 low/Fibonacci 78.6% retracement of June rally).

On the other hand, a strong dynamic resistance seems to have formed at $10,800 (20-DMA/50-DMA/Fibonacci 50% retracement of June rally) ahead of $11,500 (Fibonacci 38.2% retracement of June rally).

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price sees traders balancing on the sharp end of the blade

Bitcoin price sees traders balancing on the sharp end of the blade

Bitcoin price action is slowly but surely trying to move north on price charts as traders try to continue and hold on to the momentum that started on Monday morning.

More Bitcoin News

Litecoin Price Prediction: LTC stalls at a crucial threshold

Litecoin Price Prediction: LTC stalls at a crucial threshold

Litecoin price is trying to find its footing after lifting from support reinforced at $50.50 and topping out at $55.72. This northbound move would have pushed the token out of a narrow-ranging channel. 

More Litecoin News

Dogecoin price and on-chain metrics forecast 35% rally for DOGE

Dogecoin price and on-chain metrics forecast 35% rally for DOGE

Dogecoin price has been stuck trading between two barriers since August 28. The recent attempt to push through the upper limit indicates that DOGE buyers are ready to push it higher. 

More Dogecoin News

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price seems to have undone its breakout gains seen in the last week of September. This downtrend has morphed into a tight consolidation showing no volatility.

More Crypto.com News

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP