Bitcoin’s price is under pressure today and it is trading lower by -4.13 percent. Bitcoin is trading at $7,626 at the time of writing this article. Bitcoin has lost nearly 0.2 percent of its value in the past week. However, it is still up 109% year to date. Ethereum, the second most famous coin by market cap, is also down today by -5.93 percent but up 76% year to date. It is Ripple’s XRP token which hasn’t performed that well this year, a lackluster performance, up only 4.05 percent YTD.
BTC enthusiasts have been waiting desperately for a bull rally since the price has crossed the level of $6,000. There is no doubt that the cryptocurrency market has finally left the winter behind it and it has entered in a spring season; breaking out of the bear market shell. If this argument is true then the current sell-off must be classified as a retracement or perhaps a healthy pullback. After all, the Bitcoin price had 3 stabs at the level of $8,300, but it failed to move above this level so far. Thus, it is vital to keep an eye on important levels of support where the price could perhaps find some sort of backing.
The level which jumps out the most is sitting at the $6,631, the low formed on May 17. However, if the price doesn’t find its support there, then it is likely to continue to move towards it 50-day moving average which is trading at $5,465.
One of the major regulated Bitcoin future exchange, CME is clocking record volume for the month of May in terms of Bitcoin future volume. Since the Bitcoin futures were launched, the exchange has traded nearly 1.6MM contracts representing the notional value of $50 billion. The highest volume of Bitcoin futures traded was 33,677 on May 13. All of this comes on the heel of the largest volume of new accounts joining this space, a sign that new users are clearly entering the market. During the month of May, the number of new accounts has hit a record level of 2,547 while this number at the start of this year was sitting just a little above the 2,000 mark. Increase in these new accounts and Bitcoin future volume shows that institutions have found a way of using the Bitcoin futures along with their traditional assets.
