On Tuesday, crypto markets slumped, but since then, various altcoins have staged a recovery. However, Bitcoin extended its decline and has now dropped 6% in the past 24 hours.
Altcoins Show Signs of Recovery
This slowed down the massive losses witnessed the previous day when the world’s most traded digital asset plunged 17%. Other coins such as EOS and Ether racked some modest gains with EOS, which plunged 28% on Tuesday, advancing 3.8%.
Investors have associated the Tuesday plunge with the lackluster launch of Bakkt futures contract and the broad risk-off atmosphere in the traditional assets. On Tuesday, Bakkt managed to issue around 113 one-day contracts.
Travis Kling, the founder of cryptocurrency hedge fund Ikigai, indicated that when the launch of Bakkt futures contracts displayed underwhelming attention on its first trading day, it opened a hatch. As a result, the bottom fell out of the crypto market.
At the time of writing, Bitcoin is down 5.30% at $7,946.
What’s Next for Bitcoin?
Crypto exchange Luno’s business development head Vijay Ayyar indicates that there is a possibility of Bitcoin hitting a bottom of around $7,500 in the near-terms before the end of 2019. This is an expected consolidation owing to the strong rally that the coin has demonstrated this year.
Arca Chief Investment Officer, Jeff Dorman, indicates that Bitcoin’s price action is currently driven by near-term technical analysis. Therefore, every low price that the coin has leaped from, and every high price BTC has attained has turned out to be resistance. Dorman added that since the cryptocurrency industry is still full of short-term focused investors, the telegraphed narratives are often self-fulfilling insights.
The Tuesday slump means that BTC closed lower than its 100-day moving average for the first time in almost six months. From April through June, Bitcoin went parabolic with a bull run that took the price to $13,852. In the past few weeks, the coin has been hovering at the $10,000 level.
According to Galaxy Digital, before the selloff, BTC/USD open interest on leading exchanges was around $1 billion, but following the selloff, around $500 million of the positions got liquidated.
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