Bitcoin broke above $7500 on Sunday, 12th May 2019 at the Exchanges and OTC markets which again confirmed the bull market in Bitcoin. However, Bitcoin saw a big correction of 8.78% as the price broke from $7520 levels down to $6850-$6875. Nevertheless, it followed the bullish momentum and vertical trendline to trade above $7000 again. The price of Bitcoin at 3: 40 Hours UTC on 13th May 2019 is $7016.
B.Biddles, a trader and chart analysis, who correctly predicted this move, drawing his analogy from a bump and run reversal model of trading, has reaffirmed his ‘bullish’ stands.
Furthermore, He expects a lot of vertical movements in this bull run. He tweeted,
Peter Brandt, who also called an expected parabolic rise in Bitcoin prices was bullish as well. Nevertheless, according to his analysis, a close near $7200 market could mark the short-term top and extended a line graph below $5000 levels. He tweeted:
A close here (UTC) COULD mark ST top.
Bitcoin Futures Market Lagged Behind on the Run
The futures and derivatives market on Bitcoin is closed during the weekend, however, the on-chain activity and Exchange activity run 24/7. Therefore, the future market which closed on a low on Friday above $6290 opened with a massive gap on Monday, 13th May.
Mati Greenspan, Senior Trade Analyst at eToro tweeted,
The price of bitcoin on the CMEGroup is currently $6,290. How long do you think it’ll be before they open weekend trading on these contracts?
Furthermore, as the price on CMEGroup didn’t make a break above $7500, the short positions on the futures market were affected less. However, the short positions on Exchanges on Exchange were closed at higher prices yesterday as the market went into FOMO.
While it is still trading around $7000, the trading action this week could be significant in setting up another run or a period of accumulation.
Do you think that the bulls are exhausted or investors will start pouring in from the FOMO? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com