Bitcoin Price Pumps and Holds at $6.3K

In a day of remarkable Bitcoin (BTC) price action, the leading crypto hangs in midair following pump after pump. Defying reasonable expectations, the crypto refuses to budge despite having entered a dense and potentially hostile region of resistance.

10 may bitcoin pa(source: TradingView.com)

The composition of the resistance zone, above red, took nearly a year of retesting to break on the downside. It is thus difficult to believe that it will be quickly broken now. (Not financial advice; anything is possible, especially with Bitcoin!)

We can see on the hourly chart below (Kraken chart) that Bitcoin is trending well above its moving averages; and also that volume is clearly dropping during the dramatic price rises of the past couple of days - suggesting that a correction is possible.

10 may bitcoin pa(source: TradingView.com)

Having said that, however, strength on the Relative Strength Index (RSI) is still holding up remarkably well. On the hourly (below) and 4H charts, strength has held and risen, respectively, on the latest two price pumps. Incredibly, this may suggest that Bitcoin can maintain its current position above $6,000.

10 may bitcoin pa(source: TradingView.com)

It may now be time to start eyeing altcoins. Alts have been thrashed, as is typical, during the Bitcoin mini-bull rally of the past couple of weeks, and their extremely depressed prices present juicy buying opportunities - if such buys are carefully timed.

btc10may4.png(source: TradingView.com)

Bitcoin dominance, a key indicator for the altcoins’ prospects, is approaching a key resistance at about 61%. If we see this resistance hold, it might mean some reinvigoration for altcoins. At least one popular altcoin, BAT, has rebounded hard in the last days, exploding as much as 32% against Bitcoin (so, even more versus USD).

10 may bitcoin pa(source: CryptoCompare)

Things look good on the whole.

 

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Bitfinex Wants to Offer 100x Leverage For Crypto Derivatives Trading

Michael LaVere
  • Bitfinex will offer 100x leverage trading for cryptocurrency derivatives
  • According to the exchange's CTO, the hedging product is "ready for prime time"

Cryptocurrency exchange Bitfinex revealed it wants to offer derivatives products with up to 100x leverage for cryptocurrency traders. 

Hedging On Cryptocurrency Derivatives

Chief Technology Officer Paolo Ardoino told The Block on June 25 that the cryptocurrency exchange was ready to ship a 100x leverage product for certain users. According to the post, the project has been under development for some time and is “now ready for prime time.” 

The product was referenced in last month’s whitepaper published by Bitfinex for its $1 billion private token sale of LEO, stating

“Qualified Bitfinex account holders will be able to trade a new hedging product through a derivatives wallet.”

The whitepaper originally claimed that the new hedging mechanism would be released by the end of June, a timetable that fits with Ardoino’s “ready for prime time” statement. 

Ardoino confirmed that only “verified” customers will be allowed access to the product, given the risks involved in such highly leveraged trades. 

The CTO also took to Twitter to quell user concerns over Bitfinex’s existing 3.3x margin trading. Ardoino explained 100x leverage will be “optional,” and that their current leveraged trading products will be unaffected by the release. 

Big Risk, Big Reward

Bitfinex is looking to compete with rival exchange BitMEX, who already offers 100x leverage through its bitcoin perpetual swap contract. However, Bitfinex claims its product is designed as a legitimate hedging tool for clients, rather than a gambling mechanism. 

Max Boonen, CEO of trading firm B2C2, believes the product will only appeal to retail hedgers, as large investors will shy away from the risks involved in 100x trading. 

According to Boonen, 

“There’s nothing wrong inherently about 100x. But as a commercial hedger you want lower leverage margin. The larger investor wouldn’t want to take the risk of 100X, typically. They don’t want to go balls to the wall.”

The cryptocurrency derivatives market has been heating up. Last week bitcoin-bull Mike Novogratz’s Galaxy Digital announced plans to offer cryptocurrency options contracts.

Binance has also reportedly been exploring futures trading. On June 24, Binance CEO Changpeng Zhao tweeted the exchange had executed its first margin liquidation for a BTC short.