Bitcoin has been incurring small gains here and there, though this is nothing to be terribly excited about just yet. The currency has been working to bring itself back up to the top of the financial ladder. The problem is that it’s happening at a snail’s pace.
Bitcoin Is Moving Up Very Slowly
Recently, the currency had fallen all the way down to the $10,100 range. From there, it’s risen by about $100 a day to finally reach today’s current price of around $10,400. At this rate, granted bitcoin can keep up this level of momentum, we’re likely to see bitcoin at $12,000 again by the end of the month.
As it stands, bitcoin “boasts” primary support at around $9,790. Granted this is broken down or bitcoin cannot withstand its present speed and energy, we could potentially see the currency’s price fall back into the low $9,000 range, meaning it would lose all its gains since June.
The asset has been on something of a roll these past three months ever since the announcements that the US was considering another round of stimulus money for Americans affected by the coronavirus and that banks could now offer crypto custody services to customers.
At the same time, bitcoin is getting regular boosts to its reputation and its status as a primary digital coin, with one of the latest coming from Ledger X. The company has recently announced physically-settled bitcoin mini futures, and its products come only months after Bakkt – the institutional crypto trading platform – announced a similar venture for enthusiastic traders.
Fully collateralized, the mini futures all come with monthly expiries, and can be settled in both cash and/ or bitcoin depending on the user’s choice. CEO of Ledger X Zach Dexter explained in a recent interview:
Futures have always been a part of the company’s roadmap, and we are excited about today’s launch. Futures and options are a big part of the trading landscape. We believe it is important to have a complete suite of listed products to enhance platform liquidity and the ability to effectively hedge risk.
What Is the Biggest Weakness?
Of course, the expiration of bitcoin futures contracts can potentially put the currency in short-term danger, as the expiration of contracts can often lead to price dips, though at this point, it seems like the main danger bitcoin is facing is not diminishing futures but rather a resistance level that has proven to be too rough for the world’s number one cryptocurrency.
Despite reaching $12,000 a few times during 2020, the currency has failed to withstand the momentum needed to fly beyond the $12K mark and stay there. Bitcoin has fallen nearly $2,000 in just the past few weeks alone, and it’s still unclear if the currency has what it takes to jump back on the financial horse it was riding.