The Bitcoin stabilized at around $6,500 and the rest of the market also fluctuates slightly between the growth and decline. The benchmark cryptocurrency avoided a drawdown to $6,000 but it also failed to sustain a growth momentum to the levels above $6,800. As of Friday morning, the BTC has been losing just over 1%. It seems that the period of stability turned out to be much more stable than everyone expected, however, a number of events may still indicate an increase in the dynamics of the market in the medium term.
The volume of the BTC futures trading at the CME Group (NASDAQ:CME) has increased by 41% in the third quarter and the community may be expecting an increase of the negative dynamics before the next expiration of futures. But the Cindicator study showed that after the first futures expired, the significance of this event was smaller than crypto-community initially thought. CME Managing Director Tim McCourt tries to disown that the launch of futures in December 2017 provoked the collapse of the benchmark cryptocurrency rate by 68%, saying that they are “only a small part of the market”. However, a number of factors indicate the preparation for a second wave of “Wall Street invasion” on the cryptocurrency market.
The world's largest holding company Fidelity Investments, with $7.3 trillion of assets under management, announced the launch of custodian crypto services within a separate company Fidelity Digital Asset Services. Goldman and other investment banks have similar plans. The intentions of such giants are difficult to overestimate.
In conjunction with the race of the largest crypto exchanges to obtain regulatory approval through the introduction of tools such as “Know Your Transaction” to track user transactions, it can be assumed that in the near future crypto assets can attract substantially bigger institutional liquidity compared to the “grey” retail investments in 2017. However, the strategy of large capital is unknown to anyone and usually everything happens against the expectations of the masses, therefore, it is necessary to speak about estimated growth with a high caution.
Technical analysis shows that for the fourth day in a row the Bitcoin has been trading along the resistance line of the triangle. Lower volatility that was inconceivable last year allows the prices to remain inside a contracting triangle with a support at $6,000 and a downward resistance for an incredibly long time. But in the end of the next week the downward resistance will cross the support line. Technically, the markets will have to make their choice: wether a support line will be the basis for a long-term growth, or eventually it will change its status to the resistance line.
Alexander Kuptsikevich, the FxPro analyst