It's been an exciting week for bitcoin. A really nice rally from the $370 support level over $50 up to $420. This is the same spot where we ran into some resistance last month and it could be a nice place for us to go sideways for a bit.
Let's look at futures premiums now:
Finally the discounts are gone. After a solid month of an inverted forward curve there's now premiums across the board on OKCoin's contracts, very healthy to see.
Arbitrageurs of the cash and carry type are rejoicing: opportunities are returning. Don't forget to check out this bitcoin futures arbitrage guide where he shows you how to profit from this.
Another thing worth noting is how Bitfinex USD margin has been changing over time. Check out this chart from BFXData
You can see that the rates for borrowing USD on the largest Western exchange in Bitcoin are extremely low. This makes margin-longing bitcoin very cheap and attractive, which is rocket fuel.
Below we see why the rates are so low, it's because there's been a lot of people closing positions over the past month:
So everything is looking healthy for the moment. Bitcoin is in a nice range, and currently has had a rally that is losing a bit of momentum, but with lots of room to go up as well still.
