CRYPTOBAROMETERS MARKET COVERAGE [19th October 2018]

bitcoinbarometer (61)in #cryptocurrency • 6 years ago

Note: Bitcoinbarometer is back and comes along with a different, new way of informing the followers of this blog about changes, news and big partnerships within the cryptosphere. Furthermore, I will present you technical analysis of the top 3 cryptocurrencies (in addition to STEEM) in the market. The TA is limited to major trends, trend lines, big support and resistance areas and does not cover hourly or minutely price changes. This blog was created to deliver you a steady way of informing yourself about the major moves within the cryptocurrency market. It covers any news and price changes that are from pivotal importance.
And due to the fact that this blog now covers more than just Bitcoin itself, Bitcoinbarometer is called from now on cryptobarometer! I hope you guys are pleased with this service.

What is happening within the Cryptoverse? Let’s discuss.

The Chicago Mercantile Exchange (CME) announced the average daily trading volume (ADV) of Bitcoin futures in the third quarter. Surprisingly, despite the weak market in the third quarter, the CME showed that ADV rose 41% in the third quarter compared to the second quarter, while Open Interest (OI) - or the number of open contracts on Bitcoin futures - rose 19% in the third quarter.

Well, the most important thing is that this increase could indeed be associated with continued market suppression. Earlier this year, the Federal Reserve Bank of San Francisco claimed that the recent decline in cryptographic markets was caused by the introduction of Bitcoin futures.

They believed that the "subsequent fall in prices" after trading BTC futures did not seem to be a "coincidence".

There is no denying that the reduced volatility is attractive for institutional investors and regulators. Risk capital investor Garry Tan, who invested in Coinbase, said: "A low price range helps investors to enter a new market or asset class with significantly lower risk.

"Crypto winter generally makes it safer for overlong institutions with a Yale model to enter at a safe price. You know what's scary? Invest and then immediately experience a drop of 80%. That's hard to restore."

It's a nice feeling, but it increases frustration when we've seen good news month after month and the price continues to languish.

News like: The NYSE announced the launch of the regulated crypto currency brokerage Bakkt to institutionalize the crypto currency market sometime next month or so. Coinbase and BitGo received regulatory approval to act as custodians for institutional investors. Citigroup and Goldman Sachs announced their plans to introduce crypto-focused custodian solutions.

Brokerage giant TD Ameritrade recently announced the launch of ErisX, the first regulated multi-crypto futures market with Bitcoin, Ethereum, Bitcoin Cash and Litecoin support. Finally, this week we saw Fidelity and NASDAQ reveal plans to open crypto currency exchanges.

The biggest differentiating factor is certainly the lack of trading volume. Unless already comfortable in profit, a decline in volume is never something you want to see. The general sentiment related to crypto is not the most positive at the moment. Bitcoin, which has effectively collapsed since last year's all-time high, has led to a steady rate cut across the board.

So, on the other hand, is it the right time to collect Bitcoin?
Well, the market has certainly shown strong seller fatigue in September and October, so it is unlikely that we will see a massive downward movement in the coming weeks. The likelihood that the dominant crypto currency will fall below the USD 6,000 support level over an extended period is simply low.

A final shakeout may be in preparation before a major medium-term rally. In general, the low volatility that Bitcoin has shown over the past three months, especially this month, will help fuel the next medium-term rally.