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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.
Related Reading: Goldbug Peter Schiff Calls For Bitcoin To Close 2019 at A Loss
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.
https://twitter.com/BakktBot/status/1207405193446543362
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.
Related Reading: Why Bitcoin is Perfectly on Track for Parabolic Cycle Despite 50% Drop
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