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The market data is provided by the HitBTC exchange.[1]
The crypto world had cheered the prospects of Bitcoin futures[2] trading last year. However, Bitcoin (BTC) prices topped out just as Chicago Board Options Exchange (CBOE) futures began trading. Though not directly responsible for the fall, the futures traders have had an effect on the price, as they shorted[3] the cryptocurrency when it was closer to its lifetime highs.
Therefore, it was no surprise that the markets were not enthused after the Intercontinental Exchange (ICE) announced that it will launch[4] physically-delivered BTC futures contracts this November.
Though these products are likely to attract institutional investors, we are yet to see any concrete evidence of the institutions actively investing large sums into digital currencies. Until that happens, the cryptocurrencies might remain in a range, suitable only for short-term trading. Investors will have to be patient with their purchases because this consolidation might continue for a few more weeks.
Let’s see what do the charts forecast?
BTC/USD
Bitcoin[5] broke down of the descending channel on August 4 and fell below the downtrend line of the descending triangle, which is a bearish sign. For the past two days, the bulls have been trying to hold the 50-day SMA. This is the final support, below which a retest of the $6,000 level is probable.
Even if the bulls defend the 50-day SMA, a rally will
