Bitcoins $1000 Breakaway CME Gap Demands Attention From Analysts – BeInCrypto

CME Group is a global market company that owns numerous exchanges in New York and Chicago. In December 2017, it launched the futures market for Bitcoin (BTC). After its initial success, the group announced that it will launch options trading for Bitcoin in Q1 of 2020.

During the rapid Bitcoin price increase beginning on October 25, the Bitcoin CME futures chart has created a very large unfilled gap from $8800 to $9800. Unfilled gaps are often filled afterward and gaps, in general, often act as reversal points. Additionally, the unfilled CME gap could have been a catalyst for the rapid increase of October 24.

It is possible that the Bitcoin price is likely to decrease and fill the gap before resuming its upward movement. Trader @TheCryptomist outlined this gap in the tweet below.

Lets look at it closely, analyze the type of gap present, and hypothesize on what will it mean for future Bitcoin price movements.

A breakaway gap occurs when the price breaks out from a previous trading range with significant volume.

The current Bitcoin price gap has all the characteristics of a breakaway gap. It had been trading inside of a defined range (a descending wedge) since June 24.

The gap occurred with a very significant level of volume and took the Bitcoin price above the descending wedge. This makes it a breakaway gap.

As stated previously, when a gap is left unfilled, a very common movement is to return to those levels in order to fill the gap. In the case of the Bitcoin price, that movement would also coincide with a retest of the previous resistance line a customary movement in breakouts.

Therefore, we would not be surprised if the Bitcoin price decreased to around $8700 validating the resistance line before continuing its upward movement.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

Images courtesy of Twitter, TradingView.

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Bitcoins $1000 Breakaway CME Gap Demands Attention From Analysts - BeInCrypto