Bitcoin May Drop Until It Fills CME BTC Futures Gap at $8,500
#crypto #bitcoin
Bitcoin and the aggregated crypto markets have been incurring increased volatility over the past several days, which first began when BTC sharply moved towards $11,000 before swiftly being rejected and plummeting lower.
Now, it appears that Bitcoin is likely to drop back towards the $9,000 region, and analysts are noting that the CME Futures gap that exists around $8,500 could be a logical level for the cryptocurrency to drop to before it finds any meaningful support.
Over a one-week period, it becomes abundantly clear as to just how volatile Bitcoin has been as of late, as it dropped to lows of $9,100 last week before surging past $11,000, which was subsequently followed by a sharp selloff that has led the crypto towards its current prices.
Importantly, the parabolic formation that BTC has formed ever since it began climbing from $3,200 appears to have been broken, which likely means that it will either face a bout of consolidation or move lower in the near future.
Jonny Moe, a popular cryptocurrency analyst on Twitter, elucidated that the parabola has been broken in a recent tweet, while referencing the below chart.
Chonis Trading, another popular cryptocurrency analyst, spoke about this level in a recent tweet, noting that BTC did not form any futures gaps this week, but still has the one at $8,515 to fill.
OhNoCrypto
via https://www.ohnocrypto.com
Cole Petersen, Khareem Sudlow
Bitcoin and the aggregated crypto markets have been incurring increased volatility over the past several days, which first began when BTC sharply moved towards $11,000 before swiftly being rejected and plummeting lower.
Now, it appears that Bitcoin is likely to drop back towards the $9,000 region, and analysts are noting that the CME Futures gap that exists around $8,500 could be a logical level for the cryptocurrency to drop to before it finds any meaningful support.
Bitcoin Plummets Towards $10,200 as Selling Pressure Ramps Up
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $10,280, which is down significantly from its daily highs of nearly $10,700 that were set yesterday.Over a one-week period, it becomes abundantly clear as to just how volatile Bitcoin has been as of late, as it dropped to lows of $9,100 last week before surging past $11,000, which was subsequently followed by a sharp selloff that has led the crypto towards its current prices.
Importantly, the parabolic formation that BTC has formed ever since it began climbing from $3,200 appears to have been broken, which likely means that it will either face a bout of consolidation or move lower in the near future.
Jonny Moe, a popular cryptocurrency analyst on Twitter, elucidated that the parabola has been broken in a recent tweet, while referencing the below chart.
— Jonny Moe (@JonnyMoeTrades) July 22, 2019
Will BTC Drop Until it Fills CME Futures Gap?
One important price level that traders and analysts should closely watch is $8,515, as this is the price level at which Bitcoin formed a CME Futures gap, which are typically filled shortly after they are formed.Chonis Trading, another popular cryptocurrency analyst, spoke about this level in a recent tweet, noting that BTC did not form any futures gaps this week, but still has the one at $8,515 to fill.
“$BTC – (cme futures) new weekly candle opens within the range of the previous weeks candle so NO new gap. Only open gap on the #bitcoin “weekly” chart is at $8500 area,” he explained in a recent tweet.
Although it is unclear whether or not the key psychological price level of $10,000 will hold as a strong support region, any break below this level will likely open the gates for significantly further losses which may extend all the way down to the aforementioned CME Futures gap.$BTC – (cme futures) new weekly candle opens within the range of the previous weeks candle so NO new gap. Only open gap on the #bitcoin “weekly” chart is at $8500 area… pic.twitter.com/2kxzT8tFFl— Chonis Trading-(@BigChonis) July 21, 2019
Featured image from Shutterstock.The post Bitcoin May Drop Until It Fills CME BTC Futures Gap at $8,500 appeared first on NewsBTC.
OhNoCrypto
via https://www.ohnocrypto.com
Cole Petersen, Khareem Sudlow