Bitcoin Price Stable Near $6,500; Path of Least Resistance Higher
Bitcoin’s price traded within a narrow range on Monday after failing to make new highs over the weekend, a sign that the bulls were dialing back their optimism of an imminent breakout. However, the technical charts suggest that slow and steady upside is the path of least resistance in the short term, barring any new cases of market manipulation.
Bitcoin is currently trading at $6,477 on Bitfinex, where it was virtually unchanged compared with 24 hours ago. The price reached a high of $6,543.30 earlier in the session. Trading volumes on Bitfinex and all exchanges have declined sharply over the weekend. As of Monday, bitcoin’s 24-hour volumes were $3.4 billion.
A look at the moving averages suggests bitcoin is poised to continue higher in the short term. BTC crossed the 50-period moving average last week and is now targeting the longer-term MAs. What’s more, the 100-period moving average is fast approaching the longer-term 200-day MA.
At current values, bitcoin is capitalized at $112.2 billion, according to CoinMarketCap.
Trading in the broader cryptocurrency market was equally tepid on Monday. Total trade volumes across all cryptocurrencies and exchanges reached $10.5 billion, according to latest available data. The total market is currently valued at $202.8 billion. The majority of coins in the top-ten have posted narrow gains compared with Sunday.
XBT Issuer Doubles Down on Cryptos
The yearlong downturn in bitcoin has not deterred Sweden’s leading crypto issuer from doubling down on the market. The Stockholm-based XBT Provider AB is planning to launch a new exchange-traded product (ETP) that tracks a basket of up to ten cryptocurrencies. The product, which will be available this year, will provide blended exposure to some of the world’s leading cryptocurrencies.
In an interview with Bloomberg, company CEO Laurent Kssis said a blended ETP is “something that the market is looking for. They are telling us ‘I’d just like blended exposure to 5 or 10’ cryptocurrencies.”
XBT has been offering crypto exchange-traded products since 2015. After finding initial success in Sweden, XBT’s products entered the U.S. market last month. However, the Securities and Exchange Commission (SEC) quickly suspended trading of the Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF) over investor confusion.
In a statement after the SEC’s decision, the company said the suspension “relates only to trading in the Unites States, does not apply to trading on the listing market – Nasdaq Stockholm, and does not relate to any action taken or failed to be taken by XBT Provider AB.”
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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