Bitcoin bounces to $9,800 on Monday from last week low. The following technical analysis is based on the Elliott wave theory.
September 02, 2019 | AtoZ Markets - The crypto market added about $7 billion in the last 48 hours. However, the recovery has not been significant enough for a bullish reversal. Bitcoin has gained 2.4% in the last 24 hours and it's priced at $9,840. Furthermore, BTC has increased its market dominance from 69% to 69.5%.
The premier cryptocurrency dropped to $9,300 last week after yet another round of bearish onslaught dragged it from $10,650. In the earlier trading session today, BTC oscillated between $9,750 and $9,800 before it eventually broke upside to $9,869. Meanwhile, the move from $9,300 looks corrective.
Bakkt September Bitcoin Future: will there be a big surge?
Bakkt has been approved to launch its Bitcoin futures trading platform. Trading will begin on September 23 but clients may start depositing their funds from September 6. Is this good for Bitcoin?
We should recall how the market responded after the December 2017 CBOE Bitcoin futures launch. Around mid-December of 2017, the Bitcoin bearish trend started and lasted for nearly 12 months. Bitcoin lost over 84% of its value as it plummeted from $19,800 to $3,100. The bearish run ended in December 2018 and a huge rally followed to $13,900. In late June, a fresh bearish correction started and price hit $9,100 in July. Will the Bakkt BTC futures be followed by a similar effect?
Difference between CBOE Futures and Bakkt Futures
There is a significant difference between CBOE BTC Futures and the Bakkt's. CBOE and CME futures are based on Dollar. This means that clients who trade the Futures product will deposit or withdraw cash in Bitcoin equivalent according to the current BTCUSD exchange rate. In contrast, Bakkt's futures trader are settled in Bitcoin and not cash. Deposit and withdrawal happen in Bitcoin. The launch should be bullish. However, it might be very much limited.
Bitcoin price prediction: Elliott wave analysis
Bitcoin is very much bearish. The current dip is the correction of the 2019 bullish trend that ended in late June. In the last update, we looked at the chart below.
With the massive break below $9,750 - $9,500 support zone, the forecast above suggest BTC will drop further to $7,200 to complete wave (2).
The current bounce might proceed to $10,100 before the bear force another sell-off which will most likely break below the $9,100-$9,400 support zone. On the other hand, if the current bounce continues above $11,000, the bull will get another chance to push upside.