Bitcoin (BTC) Sinks Closer to $8,700, Avoids Death Cross for Now
BTC prices sank gradually over the past week, spending more time under $8,700, but for now avoiding a precipitous scenario.
Bitcoin (BTC) hovers between $8,700 and $8,800, for now avoiding a scenario of moving averages leading to a “death cross”. But this development is close, with expectations of new lows in the short term.
BTC traded at $8,765.39, after sinking to around $8,749. BTC struck a recent low at $8,685, recovering afterward. But trading volumes are steadily deflating, turning down a notch to $18 million. At current levels, BTC trading activity is quite far from rally levels.
At the current price range, BTC is moving within a very slim band of prices that may either cause a further decline, or another rally. For now, BTC has not attempted to regain the $9,000 level, but gains may also happen very fast.
Tether (USDT) flows are relatively tame, but there is the occasional “whale” transaction that may cause a rally.
USDT has flowed into several leading crypto-to-crypto exchanges. BTC transactions remain near their usual level. In the past 24 hours, however, there are small net inflows into exchanges, potentially leading to sell-offs.
BTC is also shifting its trading profile, as interest increases in derivative products, while spot markets slow down. Currently, BitMex derivatives see $1.4 billion in volumes, while reported volumes by a new exchange, ExtStock, reports volumes exceeding the entire BTC market by 9,000%.
This is not an unusual trick for exchanges that want to advertise their name through CoinMarketCap. But the ExtStock BTC volumes are not officially counted.
Bakkt volumes have also diminished, from above 1,500 BTC down to 250 BTC.
BTC now awaits the effect of options trading, to arrive as soon as December 9 through Bakkt. The expectations are that a derivative market of options will further stabilize the BTC price, adding to the effect of futures.