Bakkt Hype Fades as Bitcoin Nears Critical Support Level
The crypto industry spent the past year musing all the ways that the launch of Bakkt’s physically settled Bitcoin futures product could impact the aggregated crypto markets, but its lackluster launch has faded the hype surrounding the platform, which comes as Bitcoin nears a critical support level.
As Bitcoin nears this critical long-term support level, it is important that its bulls step up and bolster its price action, as a failure to do so could spell significant trouble for its near-term price action.
Bitcoin Nears Key Support Level; Will Bulls Rise Up?
At the time of writing, Bitcoin is trading down just under 2% at its current price of $8,050, which marks a slight retrace from its daily highs of over $8,300.
Bitcoin’s inability to post any type of relief rally ever since it dropped below $10,000 elucidates an underlying weakness for the cryptocurrency, and if bulls are unable to push the crypto higher in the near-future, it may incur significantly further losses.
The drop below the large descending triangle that BTC had been caught in throughout the summer months came about concurrently with Bakkt’s launch, which was met with relatively small trading volume that did little to bolster Bitcoin’s price, despite all the hype surrounding its launch.
Peter Brant, a prominent analyst, spoke about the disappointing launch of this platform, deeming their BTC futures contract on par with “shelled egg futures.”
“Potentially, the ONE person who bought ONE ICE Oct $BTC contract and sold ONE ICE Nov BTC contract on Friday locked in an 8.5% annualized yield. I rank the success of the @ICE_Markets BTC futures contract right up there with Shelled Egg futures,” he dismissively explained.
In the near-term, it is imperative that Bitcoin’s bulls step up and begin pushing the crypto higher, as Big Cheds, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that BTC is currently nearing its critical May-June support level.
“$BTC #Bitcoin daily – Will that May-June support hold?” He asked.
The coming days and weeks will likely elucidate whether or not this support level will be strong enough to push BTC back up towards the five-figure price region, as a drop below it could spark a sell-off that leads it back towards its 2019 lows in the mid-$3,000 region.