Bitcoin (BTC) has closed the day of May 3 (UTC time) above the year-to-date (YTD) highs of about $5,630, locking in a new high for 2019 after yet another explosive day of price rise.
BTC is now snagged on an uptrending resistance line, albeit with the clear potential for a bull flag formation leading into another leg up.
This monthly milestone for the leading crypto comes after closing out two fantastic months for the crypto markets in general, with explosive price rises both for Bitcoin and some leading altcoins.
Yahoo Finance pointed out today that the last month has been the best month for Bitcoin this year, putting in a full 40% of gains since April 1. Many traders and analysts are, however, expecting very strong resistance to start checking BTC at $6,000. We can see, below, that the dense knot of late-2018 price history will comprise extremely tough resistance going forward from here.
And the market seems to be staying cautious: short contracts are heavily outnumbering longs on Bitfinex, about 30,000 to 18,000 at time of writing. The shorts still have quite a long way to go, though, before reaching anywhere near historic highs. The opposite is true for longs, however, which are shockingly – and suspiciously – low respective to historical trends.
In another milestone of the extremely bullish Q1 is Bitcoin’s weekly RSI performance. It has once again passed above the area of the low 50s, after spending more than a year below this level. We may well expect a retrace to be held at these RSI levels.
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