Following months of delays, Bakkt finally launched its long-awaited bitcoin futures market on Sunday evening.
Cryptocurrency bulls like Tom Lee believe Bakkt’s arrival is a watershed moment, an industry-bending event that will change bitcoin’s story forever.
You wouldn’t know it from the charts though. The bitcoin price is down, and early trading volumes haven’t been particularly impressive.
Retail investors bought into the Bakkt rumor, but it’s beginning to look like professional traders are selling the news. And according to multiple cryptocurrency analysts, the bitcoin price could be on the cusp of a significant dump.
Citing technical analysis from TradingView, The Crypto Monk predicted that BTC would suffer a sharp decline before mounting a sustained uptrend, mimicking its behavior in 2017.
In addition, a pseudonymous account named Squeeze with over 100,000 followers predicted that the Bakkt launch would be “anti-climatic.” The analyst expects to see a slow bleed after a brief rally.
Writing over the weekend, crypto trader Josh Rager warned that the bitcoin price could test $9,600 but said that he expected that support level to hold.
His analysis is currently facing a critical test. BTC dropped below $9,700 this morning, and it’s not yet clear if bulls will hold the line.
Trader Mayne also sees weakness in the cryptocurrency market. The analyst wrote that BTC needs to reclaim the ~$10,100 level to avoid further losses:
“$10,088.5 is a key level to regain for bulls, looking weak right now I’m not sure another range low test holds.”
In other words, Mayne wouldn’t be surprised if bitcoin broke below support at $9,000.
While these bearish forecasts may sound like bad news for bitcoin, a sell-off could help lay the foundation for a stronger rally later on.
After shaking out weak hands, the market might generate the momentum needed to restart bitcoin’s bullish trend, which failed to extend past the $10,000 mark on multiple occasions.
On the other hand, some cryptocurrency traders believe Bakkt’s launch is not a fundamental catalyst for the bitcoin price.
We spoke to trader Majin just before the launch. Though he ranks among bitcoin’s biggest bulls, he’s not enthusiastic about Bakkt’s short-term influence on BTC.
“[The Bakkt launch] will be a non-event,” he said. “And then when the price starts picking up, people will say Bakkt is irrelevant and be bearish.”
Elliot Wave analyst BenjaminBlunts is also neutral about the Bakkt launch. He said he wants to see how much volume the new market will attract before he forms a stronger opinion.
“Right now I’m neutral,” he concluded. “I think we’re in no man’s land.”
Click here for a live bitcoin price chart.
Last modified: August 10, 2020 9:35 PM UTC