Bitcoin’s Short-Term Bearish Reversal

There is little doubt that bitcoin prices have been a bit frothy, with the NYSE Bitcoin Index (NYXBT) rising more than 890% since the start of the year. Over the past several months, the cryptocurrency and its blockchain technology have drawn positive feedback from the traditional banking sector, which sparked hopes that the currency might go mainstream. This was validated to some extent when the Nasdaq​ announced plans to launch bitcoin futures contracts next year.

The steep fall in bitcoin prices could be a “sell-the-news” response to the Nasdaq’s move to add bitcoin futures contracts to its offerings next year. In addition, there are some concerns that bitcoin futures could make it easier to short sell the cryptocurrency. Short selling can help make markets more efficient by enabling traders and investors to bet against overvalued assets, which could add downward pressure to the asset. (See also: TradeStation Already Seeing Demand for Bitcoin Futures.)

Bitcoin prices fell sharply on Thursday in what could become a short-term or long-term reversal. …read more

Read more here: Bitcoin’s Short-Term Bearish Reversal

Category: NYXBT

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