- The best monthly performance of Bitcoin since November of 2017 & 4th best month since 2013
- The positive wealth effect in crypto is back but did we come too far too fast?
- Leverage on BitMEX in May was the first positive funding rate month since October 2018
Some consolidation would be healthy for the market, but the current drop down is “significantly different”
Last month was the most profitable month for Bitcoin in a long time. In May, we recorded 58 percent gains after starting the month at $5,300 to climb upwards to $9,100 level but closing the month at $8,500.
However, it wasn’t just May 2019 that has turned out to be good for the leading cryptocurrency after the brutal winter of 2018 that saw Bitcoin hitting the bottom at $3,150. Till date in 2019, we have surged more than 100 percent after entering the year at $3,700.
In January we closed lower at about $3,300 level only to close next month at $3,800 level. From here, we started to see the greens. We closed the March month at $4,100 while April registered a rally to above $5,200.
BTC/USD chart, Source: TradingView
In the latest Twitter thread, crypto analyst, Rptr45 shares how May was the best monthly performance of Bitcoin since November of 2017 when it saw 61.6% gains. May also marked the 4th best month since 2013 (465% returns in November 2013 and 176% returns in March 2013) and 10th best month since 2011
9/ $BTC had its 4th consecutive positive monthly close for the first time since May-August '17 and 5th time since 2013. While some consolidation would be healthy this backdrop is significantly different than anything else we've seen during the bear market post January '18.
— Rptr45 (@Rptr45) June 3, 2019
Following a top performing month, the subsequent performance has been surprisingly positive in the 1-3 months that could be attributed to these outlier months kicking off bull runs, explains Rptr45. If we take a look at Bitcoin’s historical performance, it is exhibiting top 20% trailing 30-60D performance.
“The difference between BTCs realized cap & market cap averaged 59.5% during the month, the greatest delta since March of ’18 and now sits at >80%. The positive wealth effect in crypto is back but did we come too far too fast? In ’15-’16 it took 8 months to get back to 80%+.”
He further points out the realized cap versus the market cap difference of the flagship cryptocurrency is approaching the levels of Q1 2018. Bitcoin also shows the highest realized volume since last November at approximately 90 percent.
As for the leverage on BitMEX, in May it was the first positive funding rate month since October 2018 for Bitcoin while the first 11 days had a negative funding rate. Now, he BitMEX Insurance Fund is at a record high with the second greatest month since last November ever in notional terms by adding 3,324 BTC.
Talking about the profits, Rptr45 sys, it was the best month, however, though some consolidation would be healthy for the market, the current drop down is “significantly different than anything else we’ve seen during the bear market post January ’18.”
Lots of chop in $BTC. Part of problem being up 180% in 3 months is the multiple interpretations it affords. Only fact we have is price remains in solid uptrend.
— Bob Loukas (@BobLoukas) June 3, 2019
Bitcoin trader and investor Bob Loukas says, a clean break below $8,000 brings in a top but now the question is of time-frame, intermediate term trend or a 60-day cycle.
$BTC this was the type of move I was shorting for over the weekend, my first short since Dec. Was a few 4 hour candles too early. Such is trading.
Current short on from $8,250 (stops in profit) but nothing close to the size had on before.
— Bob Loukas (@BobLoukas) June 4, 2019
Binance Blocking 13 States From New US-Based Crypto Exchange
Binance says 13 states will be blocked from its new crypto exchange Binance.US.
The exchange, which is set to accept initial registrations on Wednesday, will prohibit customers in the following states as it works to ensure its platform is compliant across the US.
- New York
- North Carolina
Binance.US CEO Catherine Cooley says the exchange will keep pressing to ensure the platform is available to all US citizens.
“Although it is upsetting that we cannot offer Binance.US in the states where I grew up and earned my education at this time, please rest assured that this is just the beginning, and it is our mission to bring access to those of you in these states many of us call home…
U.S. customers will be able to buy listed coins with USD through ACH or wire transfer methods. We will be exploring other options based on the demand of our users.”
The platform will debut with six supported cryptocurrencies including Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, and Tether.
Users who have coins that are not available for trading on the platform can still store the assets on Binance.US.
“All coins/tokens not yet listed on Binance.US can still be stored with other custodians in the custody method of your choice (ex. hot wallet, cold storage, etc.) and traded on other venues that have live order books in those pairs. Over the coming weeks, we will be adding coins that satisfy our Digital Asset Risk Assessment Framework.”
According to Cooley, the platform plans to steadily add more coins after its initial launch.
Bitcoin, HTC collaborate on cryptocurrency smartphone
Bitcoin.com is going mobile.
The cryptocurrency inventor has announced that it is working with telecommunications manufacturer HTC on developing crypto technologies, starting with its smartphones.
In a press release, Bitcoin.com said it is beginning a long-term partnership with HTC, which has developed a smartphone with a pre-loaded Bitcoin Cash (BCH) support app.
People who buy an EXODUS 1 from HTC won’t have to download a BCH wallet app onto their phones. For people who already have an EXODUS 1, they just have to update the software on their phone, the release said.
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“The EXODUS vision has always aligned itself towards public blockchains and its fundamental transformative nature of the future of money and the Internet,” Phil Chen, Decentralized Chief Officer at HTC said in a statement.
“The Zion Vault is happy to support BCHnatively in hardware for security to go hand in hand with the BCH blockchain as an alternative to dominant payment rails and platforms,” Chen added.
However, the automatically downloaded Bitcoin app isn’t the only way the two companies are partnering.
They also plan to offer special discounts for buying phones using Bitcoin Cash as well as selling EXODUS phones on Bitcoin’s store.
“There are so many synergies between Bitcoin.com and HTC. We are very excited to be on this incredible journey together,” Bitcoin.com’s CEO Stefan Rust said in the release.
Ethereum Uppercuts Bitcoin
Ethereum has been an outperformer this week in the crypto space, after breaking out of a bullish wedge. Week to date, Ethereum (ETH) has rallied over 17 whilst a tailgating Ripple (XRP) is hot on its heels, both of which have left Bitcoin (BTC) for dust which traders -0.3% lower. Yesterday it was announced that Aztec, a company focussed on privacy-centric tools, has begun a 30-day ignition ceremony to roll out its workaround for “private transactions” on ETH, which appears to have helped it break above 203.95 resistance.
We can see on the daily chart that ETH produced a slight bullish divergence with RSI whilst its bullish wedge took shape. After a lacklustre breakout, it appeared the pattern was on the brink of failure, yet prices held above the 164.12 low before building up bullish momentum ahead of the trend’s acceleration. RSI has not reached overbought territory on the daily chart. And besides, a momentum high does not always mean a price high (as we need to allow for a divergence to form).
With the bullish wedge now in play, bulls could target the $240 high at the base of the wedge.
- A break above 217.33 assumes a run for the 240 high, although traders could look to buy dips above 203.95 support.
- RSI is currently overbought and a bearish pinbar has appeared to warn of near-term exhaustion. However, given the strength of daily RSI, prices might consolidate or provide a relatively shallow retracement before breaking higher.
- Ultimately, the four-hour trend remains bullish above 188.83, so bulls could look for a higher low to materialise before considering buying any dips.