Bitcoin Turns Bullish, Bitfinex Chart for BTC/USD Exchange Rate Looking to Break Highs
The leading cryptocurrency has started the new month on a green note after ending the last one in red. April by far has been the best month for the leading cryptocurrency as this was when Bitcoin surged from $4,100 to the highest of this year at above $5,600.
Now, as we enter into a new month, BTC has surged above $5,300 as it trades at $5,379 with 24-hours gains of 2.48 percent, at the time of writing, as per Coinmarketcap. The daily trading volume seems to be perking up as well as it yet again goes to $14 billion.
From the low of $5,127, the top cryptocurrency went to $5,330 level today at one point, before it started going down.
“This is the first time in ages that BTC has broken resistance & closed above it. We've finally got support below us that might actually hold, turning my big timeframe bias bullish. I'll stick with swing longs until that support fails. Buys in green would be juicy,”
said crypto trader and investor DonAlt.
BTC/USD chart, Source: TradingView
Meanwhile, the spread on Bitfinex and other exchanges is still persisting in the market as on Bitstamp among other exchanges like Coinbase, and Gemini BTC is trading at $5,300 on the other hand with a 6 percent rise, BTC is sitting at $5,619 on Bitfinex.
“BTC on the Bitfinex chart looks like it'll break highs at any moment right now. Still trading with a $330 premium while the Tether discount is shrinking quick. BitMex doesn't look quite as good. Very interesting to observe,”
Bitcoin Could Still See a Downtrend
According to cryptoanalyst, Magic Poop Cannon, Bitcoin is expected to catch a bit more upside before it starts rolling over in order to finally complete the right shoulder of the head and shoulder pattern.
Recently we reported that Magic sees a downside of 30 percent for BTC and he still believes a lot of downsides is to be seen with a limited amount of upside. Magic further asserts that given the increasing amount of bearish indicators, the odds of the completion of a head and shoulders pattern is
Echoing Magic’s thoughts, Crypto Birb also says Bitcoin’s weekly chart is showing a strong warning signal for bulls. He notes that the BTC rally is not expected to go further yet.
$btc weekly provides quite a strong warning signal for bulls
Series of spinning tops with recent close as high wave spinning top
with long upper shadow, above upper BB
Last time MFI was this overbought in December 2017 before bear market started-dump to 4.6k might be coming pic.twitter.com/g752qANKtD
— Crypto₿irb (@crypto_birb) April 29, 2019
According to Birb, a dump to $4.6k might be coming but at the same time, he hasn’t let go the possibility of $1.3-$1.8k zone which he says is still “on the horizon” as he says another FUD on $4.4k level may invalidate this easily to retest the lows of 2018.
However, Alistair Milne, the chief investment officer at the Digital Currency Fund claims that signs point towards a squeeze of the shorts. Talking about the Bitfenix users liquidating their Bitcoin and withdrawing funds coupled with the margin funding rates on the platform surging to 0.09 percent a day, there is a
“high risk of a very significant short squeeze, especially if BTC withdrawals continue.”