Bitcoin Price Eyes $8,000 as Bloomberg Signals New Buying Trend

• Bitcoin’s price is eyeing a fast return to $8,000.
• The largest digital currency is still on track for its worst month of 2019.
• Bitcoin Fear & Greed Index shows investor sentiment has recovered slightly from last week’s FUD-induced selloff.

Bitcoin’s price made another move higher on Friday following one of the biggest percentage gains of the month, signaling that the worst of the recent downtrend had subsided.

The largest cryptocurrency is eyeing a fast return north of $8,000 – a move that would negate bearish calls for an extended crypto winter.

BTC/USD Eyes $8,000

Bitcoin’s trading range continued to narrow on Friday following a roller coaster start to the week. The price rose by as much as 5.8% on Bitstamp to reach $7,870.35. It was last spotted hovering around $7,740 for a gain of 4%.

Bitcoin is languishing in bear-market territory, but the worst of the downtrend could be over. | Chart: Trading View

The largest cryptocurrency rebounded more than 11% on Wednesday after breaching new six-month lows. Even with the latest recovery, bitcoin is still on track for its biggest monthly drop of the year.

At current values, bitcoin has a total market capitalization of $140.3 billion. representing a 66.7% share of the overall crypto market.

Overall, market sentiment remains weak as the price continues to trade well below the 50-day moving average. The bitcoin Fear & Greed Index is currently at 31, which denotes ‘fear.’ The index plunged to the low 20s last year as fear, uncertainty and doubt (FUD) swept the markets.

The bitcoin Fear & Greed Index improved over the past week, but remains overwhelmingly bearish for the largest cryptocurrency. | Image: alternative.me

New Buying Trend Emerges

With just two days left of November, bitcoin is on track for its worst monthly drop of 2019. After opening November at a price point of around $9,600, the dominant cryptocurrency has retraced some 19%. Despite the brutal bear trend, new technical indicators suggest that the worst of the selloff may have passed.

The GTI Vera Convergence Divergence Indicator – a technical tool that measures changes in trend – has entered a new buying phase, according to Bloomberg. That means bitcoin has a short-term price target of around $8,000. Whether it holds that level is another story.

In an interview with Bloomberg, Oanda analyst Craig Erlam tempered expectations that a bearish to bullish trend had emerged. He attributed the latest recovery to “some profit taking on short positions,” adding “there’s nothing in the bounce that suggests a shift to me.”

Nevertheless, bitcoin has recovered 14% from its recent trough despite ongoing attacks from mainstream media and China’s renewed efforts to clamp down on digital currency trading. Current price points should still be attractive for long-term holders who believe that bitcoin’s stock-to-flow ratio will underpin its value in the future.

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Bitcoin Price Could Hit $1 Million on February 1st 2028, New Model Suggests

• 
  
• If bitcoin follows historical trends, it could tip $1 million by February 1st 2028.
• Based on extrapolating Timothy Peterson’s ‘never look back’ chart which tracks bitcoin’s lower troughs.
• The chart echoes Plan B’s ‘stock to flow’ model which puts BTC at $1 million near the end of the next decade.

Plenty of analysts have predicted a million-dollar bitcoin. But few have targeted such a specific date. By analyzing historical bitcoin price action, however, it’s estimated that BTC could hit $1 million on precisely February 1st, 2018.

The million-dollar target has been extrapolated from Timothy Peterson’s ‘Never Look Back’ analysis.

Peterson explains that bitcoin maintains an ever-growing ‘Never Look Back’ price. In other words, a price floor that is never breached as adoption grows. You can visualise it best in the chart below.

How we get to $1 million bitcoin

When Peterson plotted the ‘Never Look Back’ price on a logarithmic scale, a strong trend emerged over bitcoin’s decade-long history. Up and to the right.

Craig Hammell, a software engineer at Coinbase, has since extrapolated the historical data to form a rough estimate of future price. The analysis includes a maximum price, minimum price, and median expected price.

Based on the model, bitcoin’s expected price on February 1st 2028 is $1 million. The maximum price on that date is almost $1.5 million.

Why ‘Never Look Back’ price matters

Peterson’s ‘never look back’ price represents the core adoption of bitcoin. It represents, as Trace Mayer puts it, the “hodlers of last resort.” People that have bought bitcoin and will hold it for the long, long term. Hence why it won’t drop back below a certain level.

This group’s behavior is not just long-term focused, it is infinite-term focused. These people are the bitcoin adopters. This group provides a floor value for bitcoin’s price.

This trend can also be seen in bitcoin’s annual low price. Rather than tracking the euphoric tops and volatile uptrends, look instead at bitcoin’s yearly lows. With the exception of one year, it has always grown.

Not the first million-dollar bitcoin price target

Bitcoin has always been subject to wild price targets. But 2019 has seen a wave of strong mathematical models to back up the predictions.

Best-known is bitcoin’s stock-to-flow model, published by pseudonymous bitcoin quantitative analyst Plan B. His work extrapolates price data based on the scarcity model used to track gold and silver. Bitcoin’s stock-to-flow model also puts bitcoin at $1 million some time after 2029.

And who could forget John McAfee’s promise to “eat his d**k” on national television if bitcoin doesn’t hit $1 million by the end of 2020.

Come on people!!! It’s time to brush up your basic math skills and run some f*^#$ng numbers!!!! It is mathematically impossible for Bitcoin to be less than $1 mil by the end of 2020.

McAfee’s $1 million by the end of 2020 might seem farfetched, but a million-dollar bitcoin in the next ten years? It’s starting to sound plausible.

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Bakkt to Provide Bitcoin Custody but Its Product Raises Questions

Bakkt announced that it is launching custodial services for institutions, setting the stage for the mass adoption of bitcoin. | Credit: Billion Photos/Shutterstock.com

• Bakkt launched its institutional custody services.
• The Bakkt Warehouse launched with a robust insurance policy and a range of clients.
• Bakkt’s daily trading volume is picking up.

Bakkt, a bitcoin futures exchange backed by the Intercontinental Exchange (ICE), announced that it is launching custodial services for institutional enterprises. This is not the first organization to provide bitcoin custody, but the firm believes that it would set the stage for the mass adoption of the technology.

The Bakkt Warehouse

In a blog post, Bakkt announced that it received authorization from the New York Department of Financial Services (NYDFS) to offer bitcoin custody to all institutions. Now, the Bakkt Warehouse is open to all clients around the world who are looking to secure their bitcoins. According to the firm, this was the missing link in the institutional adoption of bitcoin.

A critical link — perhaps the critical link — in the institutional adoption of bitcoin is custody. When investors have ready access to regulated custodians whose security and processes they trust, the full potential of this emerging asset class and technology can flourish.

With a $125 million insurance policy, the Bakkt Warehouse will begin offering its services to a range of clients. These clients include Pantera Capital, Galaxy Digital, and Tagomi. More clients are set to be onboarding in the coming weeks.

Custody Services Market

Despite entering the custodial services market with big names behind it, the Bakkt Warehouse is not the only one with such clients.

Fidelity Investments, one of the world’s largest financial services providers with more than $7.2 trillion in client assets under administration, launched Fidelity Digital Assets in October. This is an enterprise-quality custody and trade execution services for family offices, financial advisers, and hedge funds.

Additionally, Coinbase, which has been one of the leading exchanges in the industry for over seven years, launched its custodial services in 2018. Now, Coinbase Custody manages over $7 billion worth of 30 of the top cryptocurrencies by market cap.

Bakkt Picking Up Steam

The fierce competition in the market continues increasing as more companies join the space. But Bakkt is starting to gain traction.

Even though the firm’s physically settled bitcoin futures contracts had a low start with only 71 positions staked, they have managed to recover. On Nov. 9, Bakkt saw its monthly futures volume set a new daily record of 1,756 contracts, worth over $15 million. The last time the company’s monthly futures volume spiked was on Oct. 25, with 1,179 contracts traded that day alone.

Bakkt’s daily volume sets a new record. |

As the ICE-backed company begins to see its efforts pay off, some analysts in the industry are questioning their products. According to Twitter user Ugly Old Goat, who has more than 10,000 followers, Bakk’ts physically settled bitcoin futures contracts are not what they appear to be.

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