Is $5500 The New Value Area For Bitcoin?
Bitcoin (BTC) is digging its heels in above $5000, much to the delight of crypto bulls. Talk of a long-term uptrend developing for the entire asset class is building momentum. Is this the beginning of something big in the cryptosphere?
There is no denying that the recent strength in BTC has been much-anticipated by almost everyone in the financial community. However, will this rally continue into May and extend the historically bullish performance of April?
$5500 Is Drawing Heavy Participation In Bitcoin
It is always tough to predict price action months and years in advance. For now, let’s take a look at the daily BTC technicals.
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Overview: For the past two sessions, the price action in April BTC futures has revolved around the $5500 handle. Prices are now firmly above $5000 and the appropriate bias has to be bullish. As of now, it appears that further topside extension is probable.
The most striking thing about April BTC futures is that we are seeing much heavier traded volumes than usual. BTC futures offered by the Chicago Mercantile Exchange (CME) are a large contract. This means that tick values are big and margin requirements are extensive. As a result, participation is limited to high net worth traders. For the lionshare of April, it appears that institutional money has committed to the long side of Bitcoin ― this occurrence is a very positive thing for those long cryptocurrencies.
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