Since the market calmed down from the bull run and pullback, the CNY premium to USD exchanges has been basically flat. Over the weekend we saw signs of the premium picking up again, where it reached almost 1.5%. As the weekend came to an end we had a nice move upward:
We broke nicely out of this 350-360 range and if you zoom out on bigger timeframes you can see that this is a key level going back to earlier in the month. Here's a chart from BitStamp on the 4-hour candles to illustrate:
In early November 2015 after the bull run we were at this exact level, stuck in a range, so it serves as a key resistance level in our current price path. This has been a really impressive breakout after we had a couple weeks of absolute low volatility hell.
With this momentum, the bulls are really in charge. This also reflects in the premiums on the futures exchanges, check out BitMEX dailies:
An almost 2% premium with only 4 hours to go until settlement: this is a true sign of bullish sentiment at least in the short-term.
We will have to see how BTC/USD likes this level. Maybe former resistance can turn into support here and we continue to move up. Keep monitoring the CNY premium to USD exchanges, because if that starts to skyrocket as it did when the bull-run to $500 was happening, it may be a sign that we are going for a more meaningful move upward.
Until next time, happy trading.
