Bitcoin Price Reaches $5.8K, Closes at New Year-to-Date High

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.

4 may bitcoin price(source:

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.

4 may bitcoin price(source:

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.

4 may bitcoin price(source:

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.

4 may bitcoin price(source:

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

Bullish Bitcoin Investors Are Ignoring Institutional Bears

Neil Dennis

Bitcoin investors remained positive this week, despite data showing that bearish bets on the futures market had increased during the previous week.

Positioning data on CME Bitcoin futures showed that institutional managers held 14% more short positions in the seven days to Friday, June 21, than in the week before, according to the Commodity Futures Trading Commission (CFTC).

Futures trade allows investors to back an asset's losses as well as gains: short positioning means backing an asset to fall in price over a defined period.  The increase in the CFTC short position data on CME Bitcoin futures, therefore, would indicate growing bearishness by the larger institutional players.

Playing it by the Charts

They may have been playing it by the charts. The previous two tops occured in mid-May when the price of Bitcoin reached a high of $8,352 before falling back nearly $1,000, and then at the very end of May reaching $9,066 before falling back to $7,807.

Bitcoin's price performnace

The chart shows that in the week to June 21, when shorts on CME Bitcoin futures grew, Bitcoin pushed up above $10,000, in a chart pattern that might have led many to believe another pullback was imminent.

This drop, predicted by many institutional investors, never came, however, and private investors continued to back the Bitcoin rally. Indeed, the CFTC report showed that smaller investors continued to hold more long positions - backing the continued rally: investors with fewer than 25 Bitcoin futures contracts showed four times as many long positions than shorts.

Short Covering

This may help explain how the rally of the last couple of weeks gained momentum, as those on the institutional side joined the buying to cover their short positions.

Tanya Abrosimova, analyst for FXStreet, said:

Many experts believe that at this stage Bitcoin is driven by FOMO (fear of missing out), while the market repeats the situation of late 2017.

It is also likely that Facebook's announcement about the lauch of its Libra cryptocurrency caught the institutional shorts on the wrong side of the market. Since the Libra announcement on Tuesday, June 18, Bitcoin has gained more than 30%.

Abrosimova added:

Looking technically, Bitcoin has been growing strongly for eight days in succession, which is the longest period of uninterrupted growth since December 2017. As BTC/USD is trying to take out a new barrier at $12,500. Once it is out of the way, the next bullish target of $13,000 will quickly come into view.