Bitcoin [BTC] Price Leaves Three CME Gaps Unfilled, Will this Critical Support Hold?
Bitcoin [BTC] falls below $6000 over the weekend as the price fails to hold support around $6,400. The closing for the week was down over $1000 from the high on Friday. The price of Bitcoin [BTC] at 3: 45 hours UTC on 30th March, 2019 is $5995.
The CME monthly closing on Friday for March was at $6680. The price action since February price now records three bearish gaps on the CME Bitcoin futures chart that are left unfilled.
Moreover, the magnitude of the last two gaps (9th and 30th March) have been huge, $930 and $615, respectively. Another gap only partially filled was recorded near the swing highs below $10,000 around the President’s Day Holiday.
The ‘gap analysis’, although rudimentary, has been important because of the probability of filling these gaps has been high in the past (around 95%).
In a precious analysis by trader alias WhiskeyGuy, the probability of a gap was above 95%. However, since the drop from 10,000, it now has left three out of five gaps unfilled.
Strong Bearish Wave
The last time Bitcoin’s price left such huge gaps was on the way up during the bull market of 2019.
While it was filled eventually after the drop in September, traders are usually looking for quick fills within the week itself. The probability of gaps filling in the same week was above 80% until January 2020. However, recently, the gaps have been left unfilled more often than not.
However, the current black swan event brought on the world due to Coronavirus seems to be invalidating various trends and indicators as the uncertainty among traders remain high.
Furthermore, the bearish sentiments among traders is also strong at the moment. The short players will be looking for a break below range support around $5,800 and the 200-Day Weekly Moving average at $5560. A reclaim of the $6,400-$6,500 resistance, nonetheless, should be bullish.
Do you think the gap for this week will be filled by weekend? Please share your view with us.
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