The current Bitcoin Futures CME Gap
Once again we are going to talk about the CME Futures Gap because once again it looks as if the Futures Traders are looking to close the Gap.
On Friday, November 26th, the CME Futures closed at a level of $54,430. The weekend trading continued and pushed the price of Bitcoin up. By the time the CME Futures market opened up again on Sunday night, the price had shot up to $56,290. This left us with a Gap of $1860.
How close are we to filling the Gap or finding Support?
Today we have started to fill the gap. The price of Bitcoin has fallen through the high side entry point of the gap and is currently trading at $56,160.
From this area, a 2.73% move down, which would be an additional loss of $1530 on top of the already $1310 loss from the open of the candle. However, this are can act as support but at this point, we are so close to the upward sloping trend, we might as well grab that third touch for confirmation.
Hitting the trend from the current position is a much more violent move. We would need to see an 8% drop or an additional $4505 on top of the $1310 we have already lost on the day. That calls for a near $6000 drop in the price of Bitcoin after the Daily Candle Close.
Is there any GOOD News?
The Good News is this. The previous price action may have left us a few clues and from what it looks like, if Bitcoin is to have a repeat of the last action, we could see some fireworks in the next few days.
In the first leg, Bitcoin did drop 24.55% from the newly minted ATH. The current leg is less than 23% at the moment. The really good news is that when Bitcoin found support, it rallied 65% in 15 Days for a gain of $26,640! In that 15 day rally, there were only two red days. Even more amazing was after the slight pullback, Bitcoin did go on to make another new ATH.
Now, we still have levels at $74K/$75K and we still have some levels at $88,888 but we need to see some kind of confirmation that the local trend has actually reversed.
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