Bitcoin continues to draw bearish sentiment in the market, even though BTCUSD seems to have found support at the 8,700 price area. This is in spite of rising volumes in the BCT futures market after Bakkt announced that it would open its doors to institutional custody clients with an enterprise-grade offering.
Approval from the New York Department of Financial Services (NYDFS), the agency responsible for regulation of cryptocurrency businesses in the state of New York, has opened the doorway for this announcement.
Bitcoin futures are presently seeing rising volumes, with nearly $9m worth of Bitcoin exchanging hands on Bakkt’s futures platform.
It is important for traders to understand what is happening in the cryptocurrency market with regards to Bitcoin. Charts are showing a massive increase in trading volumes and open interest, and the increase has been going on steadily since December 2017 when the first BTC futures were launched in the US by the CME and CBOE.
December 2019 will see the launch of Bitcoin options, and the use of several initiatives to promote BTC use among the general public (such as the partnership between Alibaba and Lolli) may promote greater demand for Bitcoin, which is already 85% mined.
Presently, Bitcoin is finding support at 8700 (weekly low of November 3 candle; previous weekly highs of October 6/20).
A break below 8700 could target the next support target at 7707. There is an increasing consensus that BTC may not see lows below this level but you can never be sure.
On the flip side, BTCUSD may see some upside momentum to retest the 38.2% Fibonacci level at 9350 if 8700 continues to hold.