U.S. Markets close in 4 hrs 36 mins

Bitcoin’s Price is Up More Than $1K Since Bakkt Futures News

Omkar Godbole
Coindesk

View

  • Bitcoin has risen by $1,000 since Friday’s announcement by Bakkt exchange that it will be launching physically-settled bitcoin futures on Sept. 23. The price rise has neutralized the bearish setup on the intraday charts seen last week.
  • The gains could be extended further to $11,000, as the hourly chart is reporting a bullish continuation pattern.
  • The weekly chart continues to call a deeper pullback to $9,000 with key moving averages (MAs) producing a first bearish crossover since February.
  • A weekly close above $12,000 is needed for a complete bullish revival.

Bitcoin (BTC) has gained $1,000 since the Bakkt exchange announced it has the green light to offer bitcoin futures, but key resistance still lies ahead.

The top cryptocurrency picked up a bid around $9,700 in the U.S. trading hours on Friday and printed highs above $10,750 earlier today, according to Bitstamp data.

Notably, the move above $10,000 happened on Friday after CoinDesk reported that the Intercontinental Exchange’s young subsidiary Bakkt has received regulatory approval to launch its much-anticipated platform for daily and monthly BTC futures.

Related: These Bitcoin Users Want DAI and DeFi – Here’s How They Plan to Get It

Bitcoin futures to be launched by Bakkt will be physically settled, as opposed to the cash-settled futures listed on the Chicago Mercantile Exchange.

Put simply, BTC futures trading on Bakkt will not rely upon unregulated spot markets for settlement prices and the party will receive delivery of bitcoins from the Bakkt Digital Asset Warehouse at the end of the contract period.

Many observers, including cryptocurrency analyst and trader Scott Melker, are of the opinion that Bakkt’s physically-delivered futures product will open the floodgates for the institutional money and is a long-term bullish development for bitcoin.

Related: Bitcoin Defends Price Support, But Bear Case Still Intact

Physically delivered futures require the actual purchase of bitcoins, which, according to Melker is a “huge” development. Also, there is general consensus that the price discovery in new physical delivery markets will contribute to building confidence in BTC prices.

That said, some observers are warning that an increased institutional volume my not necessarily translate into stronger buying pressure.

“Volume is volume, don’t express your bias toward it”, popular Cryptocurrency market analyst @CryptoNekoZ tweeted earlier today.

Meanwhile, financial analyst and tech journalist Joseph Young tweeted over the weekend that, “Bakkt launch was priced into the market”.

So far, the markets have reacted positively to Bakkt news if the $1,000 price rise is anything to go by.

The cryptocurrency is currently trading at $10,700 on Bitstamp and could rise further to $11,000. The gains, however, could be short-lived as the odds are stacked against the bulls, according to technical charts.

Hourly chart

BTC witnessed a high-volume ascending triangle breakout earlier today. The bullish continuation pattern indicates a resumption of the rally from the last week’s low of $9,467 and has created room for a rise to $11,000.

So far, however, the upside has been capped around $10,750.

Weekly chart

BTC fell 10.49 percent last week, strengthening the case for a deeper pullback put forward by the preceding week’s rejection above $12,000.

The 14-week relative strength index has created a bearish lower high. Further, the 5-week moving average (MA) has crossed below the 10-week MA for the first time since February.

Currently, the 5-week MA is seen at $10,610 and the 10-week MA is located at $10,691.  The bearish crossover indicates the path of least resistance is to the downside.

The moving average convergence divergence histogram continues to produce lower highs above the zero line, a sign of weakening bullish momentum.

All-in-all, the case for a fall back to $9,000 remains intact. The outlook would turn bullish only if prices print a weekly close (Sunday, UTC) above $12,000.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

Related Stories

  • Typical Retirement Savings By Age Groups: Are Yours Bigger?
    Business
    Investor's Business Daily

    Typical Retirement Savings By Age Groups: Are Yours Bigger?

    Active savers — in this case, Americans who own an IRA and-or a 401(k) account in the custody of Fidelity Investments — had savings for retirement of $215,400 as of Sept. according to new data IBD has obtained from Fidelity. In contrast, the average for all working-age families is shockingly low.

  • Business
    MarketWatch

    Dow down 414 points on losses for American Express, UnitedHealth stocks

    Dragged down by losses for shares of American Express and UnitedHealth, the Dow Jones Industrial Average is in a selloff Monday morning. The Dow (DJIA) was most recently trading 414 points lower (-1.4%), as shares of American Express (AXP) and UnitedHealth (UNH) have contributed to the blue-chip gauge's intraday decline. American Express's shares have fallen $6.09 (4.5%) while those of UnitedHealth are off $9.60 (3.3%), combining for a roughly 106-point drag on the Dow.

  • Analysts: 2 Big 8% Dividend Stocks to Buy (And 1 to Sell)
    Business
    TipRanks

    Analysts: 2 Big 8% Dividend Stocks to Buy (And 1 to Sell)

    Dividends provide a steady income stream, whether markets go up or down. With that in mind, we delved into the market data from TipRanks.com to get the lowdown on 3 high-yield dividend stocks, two of which analysts think are set to shine in 2020, and one whose prospects aren't quite as bright. Viper has exploration rights in more than 14,000 acres in the Midland, which are exploited by third parties and subsidiaries who then pay the royalties that make up Viper's income.

  • One of the most successful stock-market investors says these 3 events ‘would definitely trigger a bear market’
    Business
    MarketWatch

    One of the most successful stock-market investors says these 3 events ‘would definitely trigger a bear market’

    Stanley Druckenmiller, one of Wall Street's most successful investors, acknowledges that the markets are riding high and that investors may be able to finally breathe freely in the short term after a number of shocks, but says investors should be wary of three events that could knock assets into a bear market. One of the reasons I'm pretty sanguine right now is I think we're close enough to the election, at least we can breathe for a few months,” he told Bloomberg Television during a recent interview. But there are a trio of situations that could upend that optimism — and perhaps permanently.

  • Business
    Investopedia

    Apple Stock Could Enter Multi-Month Correction

    Relative strength indicators have lifted to extremely overbought weekly and monthly technical readings that have triggered past corrections, and it's unlikely to be different this time around. The stock has attracted an enormous supply of complacent shareholders since the summer of 2019, blinded to the reality that markets move in both directions. This amnesia could end with a shock event, like the current coronavirus outbreak, or more slowly through a pullback that gathers momentum over a few weeks.

  • How the stock market has performed during past viral outbreaks, as coronavirus infects thousands
    World
    MarketWatch

    How the stock market has performed during past viral outbreaks, as coronavirus infects thousands

    U.S. equity markets have experienced downbeat trade recently as investors keep one eye trained on a deadly flu outbreak in China. “Risk velocity – the pace at which major risks and 'black swan' events can affect asset prices – is elevated in today's markets compared to 10 years ago for three key reasons,” said Seema Shah, chief strategist at Principal Global Investors, in a research note, referring to the theory for the impact of unexpected events on markets and economies, popularized by Nassim Nicholas Taleb in his book The Black Swan: The Impact of the Highly Improbable.

  • Jeff Bezos Friended the Wrong Foreign Leaders
    Business
    Bloomberg

    Jeff Bezos Friended the Wrong Foreign Leaders

    Then last week, Bezos's yearlong tangle with Saudi Arabia burst into the headlines, with cybersecurity investigators concluding with “medium to high confidence” that Bezos's iPhone was hacked via a WhatsApp message sent directly from Crown Prince Mohammed bin Salman's account. Those are two very different situations in two separate parts of the world. But they had something in common—an overly optimistic bet (that Amazon placed, along with its Big Tech brethren) on global leaders whose dispositions turned out to be less open and, to varying degrees, more autocratic than Silicon Valley originally thought.

  • Dow Jones Futures Plunge As Coronavirus Spreads Rapidly; Apple, Tesla Lead Huge Earnings Week
    Business
    Investor's Business Daily

    Dow Jones Futures Plunge As Coronavirus Spreads Rapidly; Apple, Tesla Lead Huge Earnings Week

    Dow Jones futures tumbled Monday morning, along with S&P 500 futures and Nasdaq futures. The stock market rally retreated last week on China's coronavirus, which has continued to spread rapidly. Meanwhile, Apple, Advanced Micro Devices, Tesla, Microsoft and Facebook headline a huge week for earnings.

  • Chipotle, Google, Tesla, Amazon, Berkshire Hathaway: Companies to Watch
    Business
    Yahoo Finance

    Chipotle, Google, Tesla, Amazon, Berkshire Hathaway: Companies to Watch

    UBS has boosted the stock to neutral and raised its price target to $900 a share. U.S. State Attorneys General will meet Justice Department attorneys this week to share information on their investigations into Google (GOOGL), according to multiple news reports. Elon Musk is making a few environmental promises.

  • Adam Schiff's Closing Remarks at Impeachment Trial Disturbs Some GOP Senators
    Politics
    Meredith Videos

    Adam Schiff's Closing Remarks at Impeachment Trial Disturbs Some GOP Senators

    Senate Republicans said lead impeachment prosecutor Adam Schiff insulted them during the trial by repeating an anonymously sourced report that the White House had threatened to punish Republicans who voted against President Donald Trump.

  • Millennials Score Big On 3 Stocks (You May Not Own Yet)
    Business
    Investor's Business Daily

    Millennials Score Big On 3 Stocks (You May Not Own Yet)

    If you only own the S&P 500, you're missing out on three of millennials' biggest winning bets. Consumer discretionary Tesla and industrial sector member Uber are the two most valuable U.S. companies not yet in the S&P 500, says Howard Silverblatt, index strategist at S&P Dow Jones Indices. And then there's consumer discretionary Alibaba, which is based in China.

  • The stock market is overvalued: Allianz CEO Oliver Bate
    Business
    Yahoo Finance

    The stock market is overvalued: Allianz CEO Oliver Bate

    There is no beating around the bush for Allianz CEO Oliver Bate on the topic of today's valuations in the stock market. No, I think they [equity valuations] are overvalued,” Bate — who leads one of the world's top insurance companies and bond giant Pimco as Allianz CEO — told Yahoo Finance in an interview at the World Economic Forum. Bate ticked off several reasons for the cautious stance, all of which should get investors thinking as we near the end of a red-hot start to stocks in 2020.

  • The Key Move AbbVie Just Made To Help Its Clinch A $63 Billion Deal
    Business
    Investor's Business Daily

    The Key Move AbbVie Just Made To Help Its Clinch A $63 Billion Deal

    AbbVie stock popped Monday after the pharmaceutical company announced several divestments designed to help it secure the $63 billion takeover of Allergan. The pharmaceutical company plans to sell brazikumab to AstraZeneca. Nestle will buy AbbVie's Zenpep and Viokace.

  • Want to solve the retirement crisis? Invest $7,500 for every baby born in America
    Business
    MarketWatch

    Want to solve the retirement crisis? Invest $7,500 for every baby born in America

    This federal program, which doles out an average monthly benefit of about $1,500, was never meant to be the sole source of retirement income for older Americans. One recent proposal aims to change that. As part of his work with the Stanford Center on Longevity, Ric Edelman, chairman and co-founder of Edelman Financial Engines, proposed a new vehicle to generate an additional source of retirement income.

  • Why You Should Like Enphase Energy, Inc.’s (NASDAQ:ENPH) ROCE
    Business
    Simply Wall St.

    Why You Should Like Enphase Energy, Inc.’s (NASDAQ:ENPH) ROCE

    Today we'll look at Enphase Energy, Inc. (NASDAQ:ENPH) and reflect on its potential as an investment. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. First, we'll go over how we calculate ROCE.

  • No Survivors in Helicopter Crash That Killed Kobe Bryant, Eight Others
    News
    WSJ

    No Survivors in Helicopter Crash That Killed Kobe Bryant, Eight Others

    Kobe Bryant, the former Los Angeles Lakers superstar, died in a helicopter crash on Sunday, NBA officials confirmed to league employees. He was 41 years old. Bryant's 13-year-old daughter, Gianna, was also killed in the crash.

  • News
    TheStreet.com

    Coronavirus, Dow Futures Plunge, Google and Kobe Bryant - 5 Things You Must Know Monday

    Stock futures sank Monday and global markets fell sharply as investors weigh both the human and economic costs of the accelerating spread of the deadly coronavirus, which has killed 80 people and expanded to at least 10 different countries. Five cases of coronavirus have been confirmed in the United States. China's National Health Commission has confirmed more than 2,700 cases of the deadly disease and cautioned that its incubation period could be as long as 14 days, creating a new challenge for authorities around the world attempting to screen visitors from China who might be carrying the virus.

  • This basket of dividend growth stocks can help your portfolio stand out in 2020
    Business
    MarketWatch

    This basket of dividend growth stocks can help your portfolio stand out in 2020

    Analysts at Goldman Sachs are highlighting a “dividend growth basket” of stocks at a time when valuations for the U.S. stock market have shot up to their second-highest level since June 2002. In the firm's recent “U.S. Weekly Kickstart” report Jan. 3, the analysts, led by David Kostin, recommended investors be cautious and look for “growth at a reasonable price,” but also included a group of dividend stocks with low price-to-earnings valuations relative to the S&P 500 (SPX) that also appear likely to continue raising their dividend payouts more quickly than the broader market.

  • Business
    Barrons.com

    Coronavirus Fears Are Hitting the Dow Hard. Travel Stocks Like Delta, Chip Makers, Are Plunging.

    Losses are deepening for travel and gambling stocks as U.S. investors evaluate weekend news regarding China's coronavirus outbreak. Technology shares have been hit hard as well. Chinese officials have confirmed more than 2,700 cases of the virus, with 80 dead.

  • Earnings Beat: Skyworks Solutions, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
    Business
    Simply Wall St.

    Earnings Beat: Skyworks Solutions, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

    As you might know, Skyworks Solutions, Inc. (NASDAQ:SWKS) recently reported its quarterly numbers. The result was positive overall - although revenues of US$896m were in line with what analysts predicted, Skyworks Solutions surprised by delivering a statutory profit of US$1.50 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business.

  • Roth IRA Contributions with No Job?
    Business
    Investopedia

    Roth IRA Contributions with No Job?

    The internal Revenue Service (IRS) gets a little grumpy if you contribute to a Roth individual retirement account (IRA) without what it calls earned income. You don't necessarily need a formal job to contribute to a Roth IRA. Although it's not true in all cases, if you're paying taxes on any type of income from working, there's a good chance that you can make Roth IRA contributions.

  • Business
    MarketWatch

    Marathon Petroleum raises dividend, pushing yield above energy-sector peer group

    Marathon Petroleum Corp. (mpc) said Monday it will raise it quarterly dividend by 9.4%, to 58 cents a share from 53 cents. The stock was still inactive in premarket trading. The new dividend will be payable March 10 to shareholders of record on Feb. 19.

  • Business
    Financial Times

    Fidelity chief on becoming the fund house to fear

    When Fidelity International moved into its new London headquarters last year, chief executive Anne Richards spotted a problem. Ms Richards' phone and computer are typically found on a desk in the open-plan floor where her investment colleagues sit. An engineer by training, who once applied to be an astronaut, Ms Richards is interested in the geeky aspects of the investments business.

  • Business
    MarketWatch

    All 30 Dow stocks are falling, with Apple and Boeing the biggest drags

    All 30 of the Dow Jones Industrial Average's (djia) components are falling in premarket trading Monday, as the anxiety grows over the spreading of the corovnavirus that originated from China. The biggest drags on the Dow, which is a price-weighted index, are the selloffs in the shares of Apple Inc. (aapl) and Boeing Co. (ba) Apple's stock fell 2.5%, while the implied price decline was shaving about 54 points off the Dow's price.

  • Mortgage Rates Slide Again and Head Toward All-Time Lows
    Business
    MoneyWise

    Mortgage Rates Slide Again and Head Toward All-Time Lows

    Mortgage rates that had been sitting on the slopes have gone back on their downhill course this week — possibly on their way to record territory. “Rates fell to the lowest level in three months and are about a quarter point above all-time lows,” said Sam Khater, chief economist with Freddie Mac, in a statement on the mortgage giant's latest weekly survey. If you're shopping for a home or are thinking about a refinance, you might compare mortgage rates and find you have the perfect opportunity to save serious money on interest.