Looking at Bitcoin (BTCUSD) on CoinBase vs BitFinex, the price difference is becoming bigger, the risk is starting to increase.
Go here for a full detailed analysis and why this is unhealthy for the cryptocurrency market, especially Bitcoin:
We are now looking at $325 USD in price difference and we see BitFinex moving higher and higher but with no volume, which is a terrible signal, bloody Monday coming soon?
Feel free to hit like now... If you want to, and let's continue with this analysis.
Looking at the MACD on both exchanges, the bearish is becoming more pronounced.
While there has been no action on CoinBase, BitStamp, BitMEX, etc., BitFinex continues to grow, do they know something that we don't know? Not likely, this is just the usual Tether (USDT) situation.
All the price action details are explained in my previous analysis, but if BTCUSD does fall, you can expect support to be found first at the $4900 - $5000 range followed by EMA50 if the above level breaks.
As for a break to the upside... I believe it is possible but very unlikely, looking at CoinBase chart. EMA10 is still the challenge to break and the structure of the chart isn't that inviting for an impulse to the upside.
Where do you think Bitcoin is headed next?
Share your thoughts in the comments section below.
I mentioned the disparity this morning and asked "Why are people not buying BTC on the Coinbase Exchange and selling it on the Bitfinex Exchange to pocket the $300 difference? I got a couple thumbs up but no answers.
I've opened a Bitfinex account and as soon as I'm verified that's what I intend to do.
I did a little research and, for whatever reason, this is a classic arbitrage situation. Not only is it legal to take advantage of disparate market conditions but it is healthy to do so. If forces all players to get to a fair price discovery or lose their ass. (For lack of better words)
If I can take advantage of this situation before it changes I intend to do so.
AlanSantana
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@Kwa, BitFinex uses Tether (USDT). So you will be selling for Tether and not USD.
Tether is junk.
BitcoinBearSlayer
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@alanmasters, hmmm, their site said you had to be verified to deposit and withdraw cash. I was thinking I could deposit BTC I had previously purchased (no charge) sell it for US Dollars and then withdraw the USD. If that is not the case, it's not even worth trying. I've never owned Tether and have no desire to do so now. 95% of my BTC is in cold storage right now. I'll only bring it back to the exchanges when the price is worthy of me doing so. Less than 6K ? That's time for buying, not selling. Short term scalping maybe, but not long term.
AlanSantana
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@Kwa, Good. People actually buy BTC on BitFinex with their Tether so that they can withdraw BTC to other exchanges.
BitcoinBearSlayer
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@Kwa, I just deactivated my account. I'm not even going to pursue this. Thanks for the info. If it sounds too good....... lol