Bitcoin (BTC) is looking shakier as the year end approaches. BTC dippet a bit below $7,300, as the previous support at $7,300 turned into resistance. Now, BTC is once again at a crossroads for either relief rally or a predicted dip to a lower price range.
BTC traded at $7,202.24 on Thursday, in a tense competition between bearish and bullish attitudes. Earlier, the coin dipped to $7,185 and bounced later. Volumes increased to above $18 billion in 24 hours, suggesting speculation increasing.
BitMex price discovery shows mid-range volumes above $1.7 billion per day on the futures markets, with the price moving close to $7,157. Spot markets mostly trade at a premium above $7,200.
The current price swings happen on relatively low volumes of USDT activity. The share of USDT pairings has fallen to 70% from its usual level above 75%, while each USDT has slowed its turnover to below 500%.
This pattern suggests BTC is moving based on futures markets in pairings with the USD. The Bakkt exchange is adding to the activity, with its recent launch of cash-settled futures in Singapore.
https://twitter.com/Bakkt/status/1204129998162006016
At the same time, the BTC-settled futures on Bakkt are slowing down, moving away from peak activity.
https://twitter.com/BakktBot/status/1205023927753433088
Adding to the slide is a slowdown in BINANCE futures activity, which may also push the prices downward. After a spike in activity, the Binance market slowed down.
https://twitter.com/FuturesTracker/status/1205034569096822790
At this point, BTC is still risky as a relief rally could lead to losses from short positions. A dip is expected to signal the point at which bearish attitudes will not be trapped by a spike in prices. For now, the range prediction is downward pressures with no significant support under $7,170.
https://twitter.com/BrandonJDorsey1/status/1204930290113818624
BTC is still up more than 90% from the start of 2019, but for now, the sentiment has returned to 23 points, entering “extreme fear” territory. BTC remains unpredictable and is a suitable investment only after due diligence, especially when it comes to the risk of highly leveraged futures markets.
