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Bitcoin [BTC] price drops heavily on Sunday testing lows at $778x. Despite the growth of the Coronavirus and halving rhetoric, the sell-off in Bitcoin is now threatening an end to the bull run.
The price have reaches at the confluence of the long-term trend-line it has been holding since 2017. Derivatives and crypto traders, Tone Vays tweeted on the price action,
Finally we have #Bitcoin, all bearish targets are back on the table with a Weekly Red 2 under Red 1 while breaking short & intermediate Moving Averages on Weekly Charts. $BTC has never fallen under 200 Week SMA
Moreover, in a bull market, BTC has not broken below support from the 200-Day SMA for long. This got broken yesterday at $8673. The 200-Period Weekly Moving Average is currently at $5900, which will the last stand from the bulls.
Previously, when Bitcoin [BTC] price fell to test the bottom of the trend-line, bearish sentiments spread across the market. However, the bulls kept support above it with quick bullish buy-backs which led to the short-term bulls in 2020.
Furthermore, the LucidSAR indicator on the weekly is also converging around the trend-line support at $7995. As mentioned earlier, on longer time-frames, the swing low around $6500 will the penultimate stand for the bulls.
$875 CME Gap
CME records one of the largest gaps since the Xi-pump in October last year. However, the last one opened about $1000 higher. Whereas, the current one logs an $875 (9.5%) gap which is expected to be filled.
Popular crypto trader, XC tweeted,
Looking like a 10% gap is in store for us here at the CME Open, place your bets on whether it will be filled. $BTC
According to rudimentary research, it has been shown that CME gaps have a high probability of being filled in the same week. However, since the gap is massive, the chances of reaching $9150 this week reduces.
With global economy already holding onto a thin thread, the deadly virus has stretched the world to the limits of a recession. The stock and commodities (oil, gold) market is witnessing massive swings as global trade gets affected. The test for Bitcoin as a safe haven, or an uncorrelated asset – weak or strong is coming through hard.
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