Anyone who is even slightly interested in the cryptocurrency market remembers how Bitcoin soared to more than $ 20,000. Many make predictions about whether the currency will be able to repeat or beat this record. To better understand the possibilities of a virtual currency, you need to consider the main factors that can provoke a new rise in price above the maximum mark.

Features of Bakkt

Starting from September 6, Bakkt customers will be able to replenish the accounts of the custodian service with their own funds and wait for the trading to begin, because cryptocurrency projects have been approved.

A futures contract differs from CBOE and CME products in that settlement here is done in bitcoins, not in cash. This is very important in view of the fact that the companys clients who trade this product will receive real bitcoins on their accounts when calculating, and not the difference in US dollars.

For asset classes, it is a positive development that investment products for trading and custody are constantly evolving, because investors access to these markets is expanding and overall liquidity is also increasing.

Bitcoin price behavior needs to be considered before launching Bakkt derivatives.

Decreasing volatility of bitcoin and dollar

Even though the value of bitcoin has dropped significantly over the past month, there is a fairly clear $ 9K consolidation pattern that is support.

Practice shows that when volatility falls to such a level, this indicates that an explosive movement should be expected soon.

Hash rate continues to hit new level records

The bitcoin network is by far the strongest cryptocurrency in terms of trust, interest, and underlying health, the increased hash rate.

It should be noted that this figure is only increasing this year. This is explained by the fact that new miners enter the market very quickly, expecting a 50% reduction in reward, which will be in May.

If you monitor the volatility index and the hash rate, the results can become leading indicators that make it possible to determine whether or not there will be a significant movement in value. It will also allow assessing the state of the network and the interest of investors in it.

Continued consolidation and expectation of a big move

The cryptocurrency market last week was characterized by volatility and low volumes. Therefore, it would be unjustified to trade. Taking into account all the factors discussed above, it will very soon be possible to trade cryptocurrency at a high price. This is expected around the end of September - early October.

With the current Bitcoin price of $ 9,100, an early signal that the trend will reverse for the bulls will be a close above $ 9,900, which is now a bearish pullback level.

Bullish and Bearish scenarios

The main indicators of the bitcoin network, as well as its macroeconomic basis, suggest that these assets will continue to strengthen. To understand in which direction the price of bitcoin may go in a bullish scenario, you need to increase the perspective and shorten the time until the very near term.

As already mentioned, the price of the most popular virtual currency must overcome the bearish retracement level, which is $ 9,900. This will make it possible to avoid a bullish trend reversal. Then the nearest targets will be 10,200 and 11,000 dollars.

More recently, these prices were the pivot points. At these levels, the price often collides with a large number of orders, due to the presence of resting liquidity in this place, therefore, they, as a rule, are stopping points.

But the bearish scenario is simple. It is a descending triangle, and the trend continues, which was at the beginning of the month. The price is up 350% this year, with no significant quotes since the high support at $ 9,000.

It follows that it will be catastrophic for a bullish trend unless the critical return level of $ 9,900 is broken.

If this does not work out, in the bitcoin / dollar (BTC / USD) pair, it will be possible to observe a pullback to the previous large daily and weekly levels of $ 8,300. If a deep sale starts, the price could drop to $ 7,500.

Short-term trading should be extremely careful

Taking into account the fact that the Bitcoin network is strong and growing, as well as the fact that there is a lot of interest in it and it is available for institutional participation by Bakkt, CME or activity in the OTC markets, we can conclude that the price of Bitcoin in the long term will continue to grow.

Of course, Bitcoin, like any other cryptocurrency, has problems that need to be addressed. This includes scaling and privacy concerns. But, as past experience shows, as soon as problems arise, the rapidly growing community of web developers tries to solve these problems one by one, offering effective solutions.

Macro factors should always be remembered for short-term traders who do not want to fight the prevailing trend for a long time, and also risk losing their deposit.

The most stable results can be obtained by setting alarms, reducing the frequency of trading, and accepting trades only with the optimal ratio of profit and risk. All this will help to significantly reduce possible losses when trading the # 1 cryptocurrency.

It should always be remembered that preserving capital is as productive as increasing it when there is an advantage in trading and there is no confidence in the direction of price movement.

Given the trends in macroeconomic indicators, strong fundamentals and the coming year, one should look at pullbacks as an opportunity to buy bitcoin with a forecast for at least a year.