Bitcoin starts the week with an increase in rate. At the press time, cryptocurrency is trading at $ 8,146. According to CoinMarketCap data, the growth of the asset is 0.10%. Similarly, some top cryptocurrencies demonstrate growth, while others show a negative trend.
Meanwhile, members of the crypto community drew attention that a correction will come for a positive or negative movement. The latter can turn BTC rate to the level of $ 5,000.
The popular cryptocurrency analyst Jacob Canfield agrees with the opinion that BTC risks losing price again. The specialist drew attention to the fact that the active growth of the digital asset brought the rate to a local maximum. In his opinion, the result of a positive movement is a rebound from the resistance line with a subsequent decrease.
We are coming up on our 3rd Hidden Bearish Divergence on the daily RSI for #Bitcoin. It's been a high quality signal the past 6 months.
All bearish bias will be invalidated above $9,900.
First step is closing above $8,500.
LINK HERE:https://t.co/890CVgKJ2t
— Jacob Canfield (@JacobCanfield) January 12, 2020
Although Canfield believes that Bitcoin is still under the influence of the bear, the analyst pinpointed a level where the forces of the bear against Bitcoin would be invalidated. Jacob said the first step is above $8,500, and for complete assurance of a bullish rally, Bitcoin needs to surpass $9,900.
“We can also see the weekly RSI is moving into a transition zone similar to 2018,” Jacob added.
At the same time, the specialist drew attention to the presence of divergence in the directions of indicators with bitcoin exchange rate. According to his technical analysis, such BTC behavior may indicate an imminent reversal.
However, not all users are sure of the fact that Bitcoin still bearish.
Some participants of the crypto community drew attention to the fact that a positive trend in the movement of the bitcoin exchange rate may indicate the cryptocurrency is leaving the downstream channel. At the same time, the possibility of continued growth is also traced to several indicators.
In my humble opinion, Bitcoin has already broken out on the CME and on Spot exchanges with confirmation on the OBV & now just waiting on a higher high on Macro TFs.
Maybe some chop sideways and a bit of a backtest but everything is there to make me overall bullish. $btc pic.twitter.com/6H60LHqbsx
— fil₿fil₿ (@filbfilb) January 12, 2020
Bitcoin Trading Volumes Doubled
According to a research firm Arcane Research, Bitcoin trading volumes increased by 126% over the past week. During the holidays, trading activity was at alarmingly low levels.
Source: Arcane Research
Researchers note that a rather close correlation of bitcoin and gold against the backdrop of recent events in the Middle East. A sharp and almost synchronous increase in the first cryptocurrency and gold began on January 3 against the backdrop of the US attack on the Iraqi base and the assassination of the Iranian commander Qasem Soleimani.
The prices of both assets peaked after Iran fired several missiles at the US military base in Iraq on January 8. Against the background of Donald Trump’s speech, bitcoin and gold corrected down.
Such dynamics of both assets once again actualizes the debatable issue of Bitcoin as a protective asset, Arcane Research believes.
In general, the degree of Bitcoin and gold correlation reached the levels of 2016. However, BTC still has the closest connection with other crypto assets, including Ethereum:
Source: Arcane Research
The indicator of bitcoin volatility increased by 3%, interrupting the downward trend that continued since August.
In response to rising spot prices and trading volumes, open interest on the Bakkt regulated futures exchange has grown significantly. At the same time, the derivatives on the Chicago CME are trading at a premium to the spot price.
Source: Arcane Research
Also, the launch of trading in bitcoin options on the Chicago Mercantile Exchange (CME Group) will take place today. The launch of tenders means that CME specialists were able to obtain the necessary regulatory approval.
New opportunities to manage your bitcoin exposure will be available in the new year, starting January 13, 2020. Get the details: https://t.co/F5o8jLrO39 pic.twitter.com/5YPXYSYaDo
— CMEGroup (@CMEGroup) November 12, 2019
For the first time, the CME Group team spoke about its intention to launch Bitcoin options in September this year. Experts noted that work on a new derivative meets the growing interest in cryptocurrencies and bitcoin access control tools.
Recall that at the moment, Bitcoin futures are traded on the Chicago Mercantile Exchange. The launch took place in December 2017 – in anticipation of the BTC rate reaching maximum price values. According to representatives of the CME Group, the interest of traders in a financial instrument continues to grow.
