Here is another update from our dear friends over at Bitcoin Bravado.
The current price of Bitcoin is $4005, with 24 hour volume leveling around 5.4 billion USD.
$BTC bounced off support ($3800), as we mentioned yesterday, with promising volume.
At this point in time, we believe a short term bottom may be forming.
A higher low has been printed on the daily timeframe for $BTC, supported by volume.
We could potentially be seeing a ‘W Bottom’ forming for $BTC and for most higher market cap cryptos. This is a very bullish price structure, but like we said, this is most likely only a short-term bottom.
Our break-out target on $BTC is $4340. If that price can be closed above on any significant time frame (4hr, 12hr, D), then our target will assume a price around $5200.
We are beginning to scale back into crypto at this time to play an estimated short term (48 hour-14 day) swing. This swing play will be invalidated if $BTC closes below $3600 on a significant time frame.
To accompany the positive price action, ErisX exchange has announced they raised 27.5 million USD in their most recent fundraising round.
ErisX is hoping to launch next year, pending regulatory approval. They will offer the trading of both spot and futures markets for Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.
This fits the narrative of late that ample money is still flowing into crypto, just not directly into the crypto assets themselves at this time.
Understanding the long game of emerging markets is very important to remaining profitable.
We do believe, long-term, the investor interest from financial juggernauts such as the ones mentioned above will aid in the evolution of the crypto space into a multi-trillion dollar asset class.
That being said, crypto still has many months before these products are implemented. Just as the institutional players have the ability to set up infrastructure for many new investors to purchase cryptocurrency, we believe that they probably have the same power to suffocate prices until they are properly positioned as well.
Either way, seeing capital continuing to flow into higher-grade institutional trading products is very promising for the prospects of the blockchain space. Shout out to Bitcoin Bravado for always bringing the heat and golden nuggets inside this ever-evolving cryptocurrency ecosystem.