The past three days have been an absolute whirlwind for Bitcoin, with the price of the leading cryptocurrency whipping between $7,150, $6,400, and everywhere in between, seemingly without rhyme or reason.
This latest bout of volatility hasn’t gone unnoticed. Institutions trading cryptocurrencies have picked up on this, with reports indicating that Bakkt’s BTC volumes have hit an all-time high amid the latest move.
Bakkt’s Bitcoin Futures Gain Traction
According to Bakkt Volume Bot, a Twitter bot tracking the market activity of Bakkt’s Bitcoin derivatives market, the volume the exchange has seen during Wednesday’s trading session so far has surmounted 5,690 BTC — a sum valued at $39.8 million as of the time of writing this article.
BREAK: Bakkt volume just broke all time high
Today's volume so far: 5690 BTC ($39.80 million)
— Bakkt Volume Bot (@BakktBot) December 18, 2019
Bakkt’s rocketing volumes come hot on the heels of other reports from the volume bot which indicate that open interest in the derivatives contracts has recently passed $6 million — a sign, some say, that institutions are gaining interest in the cryptocurrency market, which itself is a long-term bullish sign.
BTC Bounces Back
This explosion in Bakkt’s volume comes as Bitcoin has been subject to a strong bout of volatility, which recently culminated in a move from $6,400 to as high as $7,200 — a 12% range — in under eight hours.
Per previous reports from NewsBTC, this latest bounce has resulted in Bitcoin forming a bullish engulfing candle on its daily chart. This would indicate that a stronger reversal is likely.
That’s not all. We yesterday reported that according to Thomas Thornton, a hedge fund services specialist and market analyst, a Bloomberg chart of Bitcoin with the TD Sequential Combo indicator suggests that BTC’s current candle is on a “buy 13.” This indicates an extended reversal to the upside has a high probability of playing out.
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