Bitcoin Breaks $4,000 Mark With Some Stability

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Bitcoin Breaks $4,000 Mark With Some Stability

Bitcoin Breaks $4,000 Mark With Some Stability

Cryptocurrency traders were closely watching the Bitcoin exchange rate on September 22 after a few sessions that pushed BTC/USD as high as $4,190. Followers of technical analysis charts were paying close attention to the three-day trading range to see if resistance could settle around the $4,040 mark, a positive sign that would suggest a bullish period and a potential path towards $5,000.

Lower volatility has been an interesting aspect of Bitcoin trading in March. In order to reach the 25-day high above $4,100 at some of the major exchanges, Bitcoin traders had to ease back on taking profits, and this trend brought some stability to the markets at a time when traders seem to be paying more attention to the so-called alt-coins. Out of the total $141.7 billion cryptocurrency market capitalization, Bitcoin still commands a 50 percent share, but trading volume has been more active among less valuable tokens.

Setting a New Expected Value for Bitcoin

The good news for BTC traders is that $4,000 seems to be settling as a new psychological level, which means that any price moves falling back towards $3,920 will likely be followed by upward pushes; however, there is virtually no support from fundamental news aside from recent developments related to the Bakkt platform, a project being pursued by the parent company of the New York Stock Exchange. Bakkt is expected to become the preferred digital currency trading platform for Wall Street investors, and it has already secured more than $700 million in early funding rounds, but it has also run into regulatory issues.

At some point in the future, Bakkt will process Bitcoin payments at Starbucks coffee shops in the United States; nonetheless, what the company is really focused on is the approval of a futures contract that will feature physical settlement in Bitcoin. Institutional investors are more interested in what Bakkt has to offer because the company will also feature a custody guarantee plus very low fees. Once Bakkt obtains regulatory approval, BTC traders will be in a happier mood and will likely turn their optimism into a bull rally.

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