- Binance Research points a figure to Bakkt exchange for causing September’s crash in the crypto market.
- Bitcoin bulls push for recovery from September’s dive but the upside is still limited.
Two of the most notable events in September were the launch of Bakkt physically settled Bitcoin futures and the unexpected bearish momentum across the crypto market. The futures product went live on September 23 with a promise of revitalizing the institutional investors’ interest in the cryptocurrency market. In fact, the CEO of the exchange Kelly Loeffler said this was “a milestone for the industry.”
However, following the launch, the cryptocurrency market dived extensively led by Bitcoin which explored lows around $7,700. This had experts in the industry working hard to demystify what caused the crash. One report by a JPMorgan strategist claimed that “the Bakkt flop is directly linked to the steep cryptocurrency market crash.” Similarly, a report conducted by Binance Research explained that Bakkt could have been directly connected to the plunge in the price of cryptocurrencies.
“One possible reason, explaining Bitcoin’s price drop, could be the general indifference towards the much-hyped release of Bakkt, as BTC prices dropped over $1,000 a day or so after trading began”¦ Short-term wise though, Bakkt’s disappointing start seems to have been a contributing factor to the recent price decline.”
Bitcoin confluence detector levels
Bitcoin price pushed from the lows posted yesterday around $7,700 to intraday highs on Tuesday at $8,518. The price is currently holding ground at $8,478 following a 2.1% correction and relative change of +172.
The confluence tool clearly shows the immediate resistance at $8,499. Contributing to the resistance here is the previous high 15-minutes, Fibonacci 23.6% one-month, and the Bollinger Band one-hour upper.
Despite the recovery witnessed in the last 24 hours, the upside is still limited at $8,675 as shown by the Fibo 38.2% one-week. Higher movement above this level will come face to face with the resistance at $9,026 in preparation for an ascend towards $10,000.
On the downside, BTC is strongly supported by various key levels starting with $8,411 highlighted by the previous high one-day and the simple moving average (SMA) one-day. The most significant support is the level at $8,147 which is home to the SMA ten four-hour chart, Fibo 38.2% one-day and SMA 100 15-mins.
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