BTC Still On The Upside Trend
Bitcoin is once again a focal point of crypto discussions around the world. After increases at the beginning of April, BTC lost a little. Now, the most popular cryptocurrency is heading up.
Recently, we wrote a comment on what damage can Bitfinex’s scandal do. As it turns out, Bitcoin doesn’t seem to be bothered about it is still growing.
Scandal, what scandal?
Let’s go back to the largest cryptocurrency when it comes to capitalization, which, despite negative reports involved the Bitfinex cryptocurrency exchange and the stablecoin Tether, has set new May maximum and beat the resistance significantly at 5800.
The cryptocurrency market is listed on nearly 300 different exchanges scattered around the world. By assumption, potential investors, regardless of their funds’ location, should operate similar or slightly divergent quotation rates of cryptocurrencies, which might be, for example, the fees at the individual cryptocurrency exchanges.
However, there is an incredibly high difference between the two leading cryptocurrency exchanges, Bitfinex and Coinbase.
Analyzing the current level of BTCUSD at Bitfinex, we can see a powerful upward signal, which is the result of breaking the determined resistance line, where the supply was not even a competition. After increases in May and determining new maximum at 6135 BTCUSD, the market takes a breath before another move.
A future in bright colors
Will the further activity be determined by the real reflection of the quoted cryptocurrency’s market situation? Or could that significant increase of BTC price be a movement caused by the outflow of capital from the Bitfinex market, which recently struggles with problems? The permanent overcoming of the new resistance will lead to further increases. However, if the supply takes the initiative, it is possible to return to the 5750 support.
On the other hand, the Coinbase cryptocurrency exchange constantly stands at 5750 resistance, and the supply in here has not managed to rise above the channel. The difference of more than 300 USD can raise concerns and irrational actions among investors. We can currently expect an attempt to match the levels set by Bitfinex. However, it seems more likely to realize profits and wait for a unification of the situation at the cryptocurrency exchanges.
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