Bitcoin Fills CME Gap as Market Awaits Potential Price Reversal
The post Bitcoin Fills CME Gap as Market Awaits Potential Price Reversal appeared on BitcoinEthereumNews.com.
In the midst of ongoing turbulence in the cryptocurrency market, Bitcoin has filled a significant CME Gap. Rekt Capital, a trader and analyst on X, confirmed the development, noting the severity of the current correction. A new CME Gap has now developed, located between $59,400 and $62,550, which Bitcoin would need to reverse to the upside to fill. The chart provided by Rekt Capital reveals several key levels and patterns. Firstly, Bitcoin recently filled a previous CME Gap, typically indicated by price movement back to a level where there was no trading activity. A new CME Gap has now formed between $59,415 and $62,550, highlighted by two blue circles on the chart. This gap occurred during periods when the CME futures market was closed, such as weekends or holidays. Several important support and resistance levels are evident. For instance, the $71,535 mark is a strong resistance level where Bitcoin has previously faced selling pressure. CME Gaps and Their Implications CME gaps often act as magnets for price action, with traders expecting these gaps to be filled. Therefore, Bitcoin might move back up to the $59,415-$62,550 range to close the gap. The formation of this new gap suggests potential short-term upward movement to fill it, though the overall bearish trend could persist if market sentiment does not improve. Another analyst, pseudonymously known as Stockmoney Lizards, corroborates this view, highlighting the ‘gap up’ that occurred between $58,700 and $60,000, which has been surpassed as the price moved through this range. According to this analyst, a high liquidity zone between $50,000 and $52,000 has been identified, where significant market activity could provide support. He also noted that with many leveraged long positions potentially set up around the $50,000 mark, a break below this could trigger a cascade of liquidations. This further action could…
Filed under: News - @ August 6, 2024 1:08 am