Bitcoin dropped $200 to $6,205 yesterday evening in the space of minutes and rose by a similar amount this morning, in the space of a minute, at around 10:30 GMT.
The Cryptocurrency currently trades at $6,420, with the testing of $6,000 feared to be in the frame in coming days. However, news that Coinbase may be teaming up with asset manager BlackRock to launch a bitcoin ETF (see below) should provide some welcome support.
The bitcoin chart at the moment shows sharp market movements punctuated by periods of low volatility, with a flatlining price.
Last days of the bear market?
The “unnatural” price print may be a result of a closely matched fight between a limited number of whale traders taking positions in opposite directions. The weird erratic price behaviour of recent days could signal the last days of the bear market, heralding the long awaited upturn. For those on the outside looking in, with no skin in the game, market entry points are beckoning.
Because there are a small number of big “whale”coin holders, it doesn’t take much to move the price around on low volumes.
Although the downtrend momentum still gives the bears the whip hand, support at $6,000 should be considered the outer defences, with the castle keep safeguarding the capitulation bottom near $5,500-5,000 – and there could be some overshoot.
Ethereum is again weathering the storm badly, down 6.3% compared to Bitcoin’s 1.5% 24-hour decline. Trading at $204, ETH had sunk to a low of $188 overnight.
Overall crypto market cap has shrivelled to $200 billion, according to coinmarketcap.
Coinbase BlackRock bitcoin ETF
Beyond the charts, news from TechCrunch’s Disrupt event, via Business Insider, it transpires that Coinbase and asset manager BlackRock are looking at putting a bitcoin ETF together should firm sentiment.
The VanEck Solid X Bitcoin ETF is up for approval later this month, but with nine other proposals recently rejected, hopes are not high.
However the VanEck ETF does have the advantages of intending to hold “physical” bitcoin as opposed to a derivative product.
Although there is no ETF available to individual investors, the XBT Provider Bitcoin Tracker One exchange traded note is available from most US brokers. XBT Provider also offers an Ethereum tracker.
The bitcoin tracker has been available in Europe since 2015, denominated in Swedish Krona and euro. There is now a dollar version.