2019-9-6 21:00 |
Bitcoin price is closing in on $11,000 after a period of extreme volatility. Last week, the crypto asset fell below $10,000 in what many are calling a bear trap, and quickly bounced from lows around $9,400 back up the current price of $10,900 where it is currently trading.
Along the way back up, yet another CME Future gap was created, making four total gaps that are just waiting to be filled. With the leading crypto asset trending up once again, which CME Futures gap will Bitcoin end up filling next?
Unfilled CME Futures Gaps Could Help Predict Bitcoin Price ActionThe crypto community is often torn over CME Future gaps and their significance in Bitcoin markets. Many believe that these gaps always get filled, and Bitcoin price cannot move onto its bull run without first filling the CME Futures gaps left lower from how fast the asset had risen after it left its bear market bottom behind.
Related Reading | Monthly Bitcoin Lows Demonstrate How Strong The Next Bull Market Will Be
According to crypto analyst CastilloTrading, there are now four CME Futures gaps that exist on Bitcoin price charts, each just sitting waiting to be filled by more recent price action.
$BTC CME Futures Gap *UPDATE*
New gap has been created from $10,400-$10,100. No gaps have been filled in over two weeks, shows that recent PA how been fairly weak.
>$11,950-$11,700
>$10,400-$10,100
>$9,000-$8,500
>$7,200-$7,450
Always good to keep an eye on these levels.$BTC pic.twitter.com/sqwL17m1MH
— Castillo Trading (@CastilloTrading) September 6, 2019
One CME Futures gap was due to the most recent Labor Day weekend rally, between $10,100 and $10,400. Due to the close proximity to current price action, this could be the most likely target to get filled. Holidays, like Labor Day, have been statistically shown to result in strong price action and rallies – exactly what occurred this past holiday weekend.
Below current prices, lies two CME Future gaps: one between $8,500 and $9,000 – a target that many have been watching as a place buyers are waiting to buy the dip – and another between $7,200 and $7,450.
Above here, the next highest gap would be between $11,700 and $11,950. Should Bitcoin price take out the higher target, it is unlikely that Bitcoin price will ever return to fill the lowest gaps, as a break above $11,300 would take Bitcoin up out of its symmetrical triangle and resume its bull run. The symmetrical triangle target would take Bitcoin price to a new 2019 high, breaking above $13,800 where it was rejected from back in June.
Such a powerful example by bulls would likely reassure the market that Bitcoin’s bull run is back on, and cause serious FOMO that would propel Bitcoin price to set a new all-time high and send the asset parabolic once again.
Related Reading | Power Law: Tracking Bitcoin’s Growth to $100K and Beyond
Gaps are often left on charts after extremely powerful moves that occur after trading sessions have closed, for example, on weekends or holidays. This is exacly what happened recently with Bitcoin price, leaving the fourth gap on CME Futures price charts. Gaps like the ones on Bitcoin price charts are more commonly found in speculative assets like BTC and other crypto-assets.
The post CME Futures Gaps Pile Up, Which Will Bitcoin Price Fill Next? appeared first on NewsBTC.
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