Bitcoin left a big gap over the weekend that has yet to be filled. While BTCUSD was crashing $1,500 in less than 2 hours, the bulls kept reassuring themselves that it is nothing to worry about as that gap will be filled when Bitcoin CME Futures start trading next week. In this analysis, I want to highlight both the bullish and the bearish scenario to help you make your own mind as to what might happen next.
The bullish scenario:
The price founds support on the 0.618 fib level around $8.2k and has bounced off strongly from there. It is currently knocking at $9k and might soon succeed in breaking past it. Will it fill that gap? That remains to be seen, but the technicals indicate that it is possible that this gap might be filled before we go down again. The previously broken trend line support is likely to be tested as resistance and we already have a confluence of trend line support and the 0.618 fib level to hold the price above $8.2k.
The bearish scenario:
Even though the possibility of a retest of $10 is still there from a technical analysis standpoint, we know from recent trading history that Bitcoin has had a very hard time filling gaps left on the way down. The gap between $8.2k and $9k that was filled recently took months to be filled. It is therefore possible that the price declines without filling that gap at this point. It would also keep the bulls optimistic and hoping that there's no need to panic even if the price declines because it will end up filling the gap in the future.
Conclusion:
Regardless of whether the gap is filled now or later, it has become clear that BTCUSD is not headed towards a new all-time high. It is only a matter of time before we see that major downtrend begin. My own views and opinions on this remain the same as they were since 2018. Nothing has changed and it is all playing out as I anticipated.
Leave your thoughts and suggestions down below. If you liked this idea, please give it a thumbs up and follow for more. Good luck! :')
The bullish scenario:
The price founds support on the 0.618 fib level around $8.2k and has bounced off strongly from there. It is currently knocking at $9k and might soon succeed in breaking past it. Will it fill that gap? That remains to be seen, but the technicals indicate that it is possible that this gap might be filled before we go down again. The previously broken trend line support is likely to be tested as resistance and we already have a confluence of trend line support and the 0.618 fib level to hold the price above $8.2k.
The bearish scenario:
Even though the possibility of a retest of $10 is still there from a technical analysis standpoint, we know from recent trading history that Bitcoin has had a very hard time filling gaps left on the way down. The gap between $8.2k and $9k that was filled recently took months to be filled. It is therefore possible that the price declines without filling that gap at this point. It would also keep the bulls optimistic and hoping that there's no need to panic even if the price declines because it will end up filling the gap in the future.
Conclusion:
Regardless of whether the gap is filled now or later, it has become clear that BTCUSD is not headed towards a new all-time high. It is only a matter of time before we see that major downtrend begin. My own views and opinions on this remain the same as they were since 2018. Nothing has changed and it is all playing out as I anticipated.
Leave your thoughts and suggestions down below. If you liked this idea, please give it a thumbs up and follow for more. Good luck! :')