Bitcoin price has been trading in a tight $147 range so far this week, which has been the case now for around 5 days, while the market attempts to digest the information around Bitfinex and Tether. As we close out the month, we take a look at the BTC/USD charts and what may lie ahead.
Bitcoin Price: 1-Month Chart
Looking at the monthly chart, Bitcoin price 00 has had a tremendous month, kicking off in the early hours of the second of March, taking Bitcoin from lows of little over $4k to highs of $5627 – or up around 39% and now some 70% for the year which is in stark contrast to 2018.
Despite looking unable to print a high across the $6555 level, from which BTC fell in November 2018, the current move goes a long way to reigniting interest in the market.
Bitcoin is on track to close out with the Highest volume for 2019, favoring the bulls and has printed a third consecutive higher low on the mac-d histogram, which is now flattening out and looks like it may be able to avoid crossing below zero which would be considered bearish.
50-month moving average also looks as though it is now likely to act as reasonable support should it be tested and now lies at around $3400.
4-Hour Chart
Looking closer at the 4-hour chart, bitcoin is trading at the upper of the weekly range, around $5200. The MACD is trending to the upside and the histogram is printing higher highs.
Despite the uncertainty around Bitfinex and Tether, there seem to be some signs that the bulls want to try to break the weekly highs and finish the month closer to the mid $5000s.
At the time of publishing, Bitcoin price has indeed broken to new weekly highs and printed a now higher weekly high up at $5281, which goes some way to suggest that the bulls mean business going into the close weekly close.
Open-Short Positions
It is certainly possible that this is just another chapter in the Bitfinex / Tether saga which eventually works itself out in the end. This is also the opinion of many veteran traders in the market.
However, the open-short positions at Bitfinex are now at all-time highs for the year, with large interest rates attached. This will inevitably have life for only so long, with potential upside risk now threatening as the cost of being short increasing across the board.
With only a matter of hours remaining, the short term risk appears to be to the upside however there remains the overhanging Tether risk, which will continue to loom over the market as we move into May.
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The views and opinions of the writer should not be misconstrued as financial advice. For disclosure, the writer holds Bitcoin at the time of writing.
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