Bitcoin Price Bitcoin Futures Activity Dictating Market Direction as Price Surpasses $12,000
Martin Young | Aug 06, 2019 | 04:46
It has been another day of gains on crypto markets and yet again bitcoin price is surging. Just like yesterday, traders in Asia are dictating movements as BTC shot past $12,000 a couple of hours ago.
Asian Trading Moving Bitcoin
A virtually identical shift in price action has happened again in Asia as bitcoin lifted above the $12k milestone. After spending most of the day trading around $11,700, with very little momentum coming from US trading hours, BTC started to lift again. As this is being written it is hitting a new high for almost a month of $12,300 according to Tradingview.
BTC price 1-hour chart – Tradingview.com
The chart clearly shows the minor fractal that happened the same time yesterday when it was suggested that Chinese buyers were loading up on bitcoin as their currency dropped to a ten year low against the US dollar.
The pump has added a further 5% to BTC prices as it moves effortlessly through another level of resistance. From here the next barrier to a new 2019 high is $13,100, and then it is all the way to the top at $13,800. At the time of writing bitcoin price was trading above $12k at 00.
Futures Markets Dictating Direction
It is clear that bitcoin adoption is increasing and futures markets appear to be leading the charge. According to Bloomberg analyst Mike McGlone this shows a clear increase in buying and holding BTC.
“Bitcoin’s footing is getting stronger in terms of price and mainstream adoption, with futures-market activity dictating the first-born crypto’s direction. An increasing premium in the futures’ trading prices is indicative of growing buy-and-hold interest.”
Bitcoin's footing is getting stronger in terms of price and mainstream adoption, with futures-market activity dictating the first-born crypto's direction. An increasing premium in the futures' trading prices is indicative of growing buy-and-hold interest. pic.twitter.com/ZeVmbIXWSL
— Mike McGlone (@mikemcglone11) August 5, 2019
Mainstream is the operative word here. Even CNBC is now extremely bullish on bitcoin and, according to Peter Schiff, trying to get its viewers to buy it.
“CNBC is trying its best to dupe its audience into buying Bitcoin. Despite gold being a much larger market, CNBC devotes far more airtime to Bitcoin. The Chinese aren’t buying Bitcoin as a safe haven. Speculators are buying, betting that the Chinese will buy it as a safe haven!”
Fellow bitcoin bull, Fundstrat’s Tom Lee, also commented on BTC becoming a valid macro hedge which could set the asset up for a new all-time high this year.
Bitcoin is proving itself to be a valid macro hedge. That is a change in its character this year and sets it up for new highs. https://t.co/FqIkx0DWRR
— Thomas Lee (@fundstrat) August 5, 2019
Total crypto market capitalization has reached $317 billion and the additional $8 billion injected since this time yesterday is nearly all bitcoin. With a market share now at 70% the king of crypto is making sure the rest of the crypto market remains frozen over.
Will BTC reach a new ATH this year? Add your thoughts below
Images via Bitcoinist Image Library, Twitter: @mikemcglone11, @fundstrat, BTC/USD charts by tradingview
