The $ 3,500 CME gap is a potential threat to Bitcoin's intense adjustment














Typically, Bitcoin will close most of the CME gaps. There is currently a gap at $ 3,500 and it is likely that the leading cryptocurrency will retest the $ 3,000 area to close it.


Earlier this month, former economist and hedge fund manager of the International Monetary Fund (IMF) Mark Dow described Bitcoin as "short", noting that the macro trend is still unfavorable. for buyer.




“On the chart, Bitcoin is facing too big resistance. It's a chance to short. ”


The void is not the only base predicting Bitcoin retest the lows


The CME gap forms when the Bitcoin price moves outside the operating hours of the CME Bitcoin futures market.


For example, if the price stays at $ 6,600 when the futures market closes and rises to $ 7,000 at the open, the gap is between $ 6,600 and $ 7,000 on the CME.


Although CME accounts for the majority of global BTC trading volume, the Bitcoin price is not directed towards CME gaps. It often plays in the gaps if resonating with other factors such as momentum, volume, buying or selling pressure and technical structure.


In fact, the CME gap is less serious than the notable future market volume decline since March.


When the market stock As the United States collapsed, recognized investors and institutions showed signs of exiting the crypto market. Since then, volume has plummeted on the Bitcoin futures market, limiting the impact of CME on the short-term BTC price trend.




“Significant gaps on the 4-hour chart. This is my goto chart. I hope all these gaps will be filled sometime. Not sure in which order ”


There are 4 negative factors that trigger the possibility of Bitcoin price adjustment


Currently, Bitcoin price is hovering near $ 6,800. It has been rejected by the $ 7,100 to $ 7,500 range three times over the past week, which will often result in a breakdown to lower support levels.


The technical structure shows that BTC is likely to retest around $ 4,800 to $ 5,500 based on the key Fibonacci levels, along with the presence of the CME gap at $ 3,500 making the cryptocurrency more vulnerable to correction. .


But some traders predict Bitcoin prices will react to halving in the first week of May.


According to Google Trends data, interest in searching for “Bitcoin halving” is near an all-time high, indicating that investors are curious about the event.




“Searches halving Bitcoin is near an all-time high. ”


Historical data shows that the price of BTC spiked right after the halving occurred, then consolidated in the near term. During the past two halving sessions, Bitcoin has seen price increases lasting from the next 10 to 11 months.


Resistance just above current prices, a low CME gap, a sluggish price that cannot break through the year opening and a relatively low volume point all signal a potential pullback in a short time, but halving remains a positive variable. of BTC.


The cloud turned into resistance which is why prices were rejected at $ 7,000


After the start of the extremely optimistic year, Bitcoin and the rest collapsed catastrophically as the panic due to the Corona virus began to spiral out of control and affect every aspect of the economy and financial markets.


The leading digital currency dropped below $ 4,000, then increased from $ 3,800 and within a month nearly doubled, returning to above $ 7,000 last week.


However, the price of Bitcoin was unable to hold this critical level and the bulls failed to maintain the support level indicating the possibility of a further decline.


According to the famous analyst, the cloud has become resistant on the 4-hour time frame and has just 'turned over' after failing to reach a high.


Now, the level of support has been lost, and the two levels of "untested" support are still below.




"The cloud is becoming resistance on the 4-hour chart - just turned" red "after breakout failed on 12/4.


Levels of concern for long:


1) 64xx


2) 54xx


Why?


Only 2 resistance levels have not been tested as a support on the way up. ”


The next reasonable Bitcoin price targets are $ 6,400 and $ 5,400 when the cloud turns red


The cloud turned red, signaling that the momentum of the bulls could not overcome the selling pressure, resulting in the bears regaining control.


A possible sell-off could occur, as the damage to the market structure after the Corona incident in mid-March has not been restored and a prolonged recession could occur in the near future.


If the downside bounces the Bitcoin price over the next few days or weeks, the next logical targets exist at $ 6,400 and $ 5,400.


Trader also confirmed that the cloud has become a resistance level for the two support areas below which have not been tested at those two prices.


On the way back up in late March and early April, Bitcoin has crossed these levels and never returned to confirm they were support before rising higher.


Leading cryptocurrencies by market cap may need to drop, confirming those areas are supportive, before bulls confidently push prices upwards.


The 200 moving average is also close to the $ 6,400 range, making it an ideal place to fall, where a reversal move can form.


With nearby halving, cryptocurrencies could explode to new highs as in the past, making this fall the most important period for Bitcoin's price.


You can see the price of BTC here.


Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


Thuy Trang


According to AZCoin News










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