The long due correction in the crypto markets began soon than most traders expected. Yesterday, Bitcoin [BTC] pullbacks to test low at $9602 driving altcoins with it as well. Nonetheless, it bounced back to test $10,000 in the following hours, suggesting a strong buying pressure.
The weekly closed on a red (spot markets) at $9912 with a spinning top formation indicating indecision or a consolidation after strong bullish action in the crypto markets.
According to leading chart analyst, Sawcruhteez, as price continues to hold $9700-$9800 and stays above prior resistance at $9500, the bullish arguments remains intact.
The 200 and 50-Day Moving Average are nearing a golden cross as the price continues to trade above the 200-Day MA. The realization of the cross would further strengthen bullish sentiments.
CME GAP and Holidays
Moreover, the huge bullish gap on CME forms for a strong inclinations towards a buyback. The difference between the opening on Friday, last week, and Monday is $325.
Leading derivatives and crypto trader, Hsaka notifies CT on the timings of the President’s Day Holiday in the US.
CME $BTC timings for the holiday.
Hence, the exchange will halt operations 4 hours earlier today and open next on Tuesday at 23: 00 hours UTC. Hence, another 29 hours of inactivity has the potential to further log another Gap.
While CME gaps have had a strong tendency to be filled in the same week, the traders will closely watch the price action during the Holiday.
Nevertheless, Gaps are essentially inefficiencies in the market continuing from old time. Veteran trader and chart analyst, UglyOldGoat notes,
Gaps. Before Bitcoin and 24 hours markets, this crap happened all the time on traditional markets. Limits is another phenomenon that was rampant is 1973. Thank you, Arthur Hayes, for the innovations you developed on Bitmex.
However, a break below $9200 would bring the price back to test the prior range supports. Prominent crypto trader, B.Biddles, tweeted the idea for this critical bearish support and resistance on higher-time frames.
— b.biddles (@thalamu_) February 16, 2020
Do you think the volatility in the markets will cool of around $10,000 or further correction is due? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com