In a nice change from this rather bearish week we have been having, the market is starting to show signs of a bullish resurgence.
Over at OKCoin the Weeklies contracts are at a nearly $2 premium to the Index, while Quarterlies are trading at an $8 premium, only days ago it was trading at a discount: http://www.bitcoinfuturesguide.com/bitc ... -sentiment.
At BitMEX, the daily futures contract (the most popular and liquid product they offer) is showing a nearly $2 premium with 6 hours still to settlement. Overall this reflects bullish expectations of traders and it is breathing life into the market.
Across the board we saw heavy buying in the spot markets. In the low $310s the bears were in charge, sentiment was in the dumps. Then we got some nice buying yesterday which picked up again today, giving hope to the longs out there.
If the upward momentum can be sustained, there may be a continuation of the bull-run and this bear-trend was just a small correction in the bigger move up that we could see the rest of the year.
But don't get too confident -- sentiment can change on a dime, and when you zoom the timeframe out a bit more you can see that we still have some resistance to overcome on the 4H chart before we can consider any major changes in direction:
The bulls have taken the wheel for now, and the remainder of the week will be a true test of whether we are in a bear-trend or if we have established a floor and will move up from here.
Happy trading.
