Bitcoin (BTC) Extends Monthly Gains

Posted Tuesday, May 28, 2019 by
Shain Vernier • 1 min read

The story of the early trading week has been the steep rally in Bitcoin (BTC). Extending the gains of what has already been an extremely strong May, Bitcoin ran to highs near $9000 last Sunday. Crypto bulls are ecstatic over the robust price action and are touting an imminent return to $10,000 for BTC.

One of the great things about cryptocurrencies is that the cash markets are always open. While forex, equities, and futures products are closed for business on the weekends, the crypto trade continues. Last Sunday brought an abundance of bids to BTC, prompting an opening week GAP up for May BTC futures.

May Bitcoin Futures Open GAP Up

For the second time this month, May Bitcoin futures opened the trading week GAP up. The last opening GAP occurred on 13 May and was tested five days later in a BTC flash crash. It will be interesting to see if this week’s opening GAP is scrutinized in the same fashion.

May Bitcoin Futures (BTC), Daily Chart
May Bitcoin Futures (BTC), Daily Chart

Here are the levels to watch in BTC as we move forward:

  • Resistance(1): Psyche Level, $9000
  • Resistance(2): Psyche Level, $10000

Overview: From a fundamental standpoint, there is no single driver of the recent bullish action in cryptocurrencies. The news cycle has been relatively quiet, with no major regulatory developments impacting pricing. At this point, it appears the rally is organic, simply a product of growing positive sentiment toward digital currencies.

Right now, the entire cryptosphere is watching BTC with bated breath. $10,000 has long been a highly touted technical level ― if it is taken out, the “crypto winter” will be deemed officially over.

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