Bitcoin Price Steady, Holding New YTD Highs

Bitcoin's (BTC) direction is currently vague, with the crypto taking a breather after another week of exceptional and erratic price pumps - and after setting in new year-to-date highs.

5 may bitcoin price(source:

A rather surprising and dramatic break up on May 3, quashing for now fears surrounding Bitfinex and Tether, was followed next day (May 4) by a violent dump down to $5,500. But this movement was quickly bought up, and a slight uptrend has resumed.

Many analysts are waiting for Bitcoin to top out its impressive run-up and correct. Although the leading crypto has so far refused to make a significant correction down, we are now closing in on the definitive knot of resistance of all of 2018: around $6,000.

5 may bitcoin price(source:

This correction may come at any time, so we might as well prepare for it. The problem with this activity is that there is not much clear price history to latch on to in the recent past, namely during the late 2018 capitulation from $6,000 to almost $3,000 - it is a bit of a “no man’s land.”

5 may bitcoin price(source:

We may use a Fibonacci retracement overlay (displayed) to try and predict a possible retracement level. But this seems vague without confluent and strong price history, and thus we might only require that a retracement stays above the critical $4,200 breakout point from April; and ideally above the 200 day moving average, currently sitting at $4,400

Most chartists of Elliot Wave theory (technical analysis can be rather tribal with respect to methodology!) definitely see a correction as necessary, within an obvious and massive impulse wave up (see pattern below).

5 may bitcoin price(source:

Putting aside grand movements, we can at least discern the market structure of the current medium term price action, by now forming a yet larger uptrend channel and exhibiting several reference points to grab ahold of. Based on this structure, we might expect a shorter term correction (within a week) to be bought up at about $5,300.

5 may bitcoin price(source:

And regarding the above chart, ignore the doom wick to the downside - as I already discussed in an article, this (seeming) anomaly occurred only on Kraken.

(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.