Bitcoin Price Set to Range in Safe Channel

Bitcoin (BTC) is looking strong today, after breaking out to the upside from a period of consolidation above the critical $5,000 area. The leading crypto is now retesting the topside of its April channel, first laid between April 3 and 6.

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There is a good likelihood of rejection here, owing to tepid strength and volume on the attempt (at time of writing it already looks to be rolling over). A rejection here is not bad, however, as Bitcoin’s ranging in this channel could give the rest of the market some runway: a stable Bitcoin is historically the only time when altcoins do really well, and this still seems to be the case.

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While short term volatility for Bitcoin looks to be cooling off, the leading crypto still looks great on longer term timeframes.

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On the weekly chart above, the trend is a clear “up” as all of the April gains were handily defended - even with last week’s Tether/Bitfinex news, which does not appear to have damanged the market much. And the weekly histogram has, for the first time in over a year, shown strength above the median line.

What’s more, the latest weekly candle is so far looking fabulous. If this candle can last a few more days at this level, it will form a bullish engulfing candle versus the previous week’s red candle and look extremely promising.

The daily chart looks less bullish, though, suggesting that such a good weekly candle might evade us. Although we have achieved a “golden cross,” we can clearly see falling strength on the daily RSI, with lower highs and lows. Falling volume is visible, suggesting consolidation.

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All Bitcoin really needs to do is range above $5,000 - only that much strength is necessary. If it can do this, gather strength for a new movement, and let the rest of the market run, this would be completely ideal.

The negative alternative is falling back below $5K. This retrace would fall into a sort of no-man’s-land between $5,000 and $4,200 where this is very little recent price history - and thus little predictability for support zones. But we’ll worry about that if it happens.

(The views and opinions expressed here do not reflect that of 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.