Bitcoin Dump creates HUGE CME Futures Gap to the UPSIDE! (BTC1!)

BTC1! CME GAP 📉

The CME Futures currently has created a gap due to the dumpage experienced last night. (60165-51370, BTC is currently at 55,550)


Taking into account that BTCUSD fell out of a rising wedge (Red) the technical target would be in the 45k area..
However seeing that there was a PERFECT bounce off of the bottom this ascending channel coupled with the fact that a major CME Futures gapwas created to the upside, the target of the falling wedge does not necessarily mean it has to be met.



Bitcoin price hit 51,500 area (Bitstamp).
Perfectly testing the bottom of the ascending channel that Bitcoin price action has been in for the past 69 days.



Now lets take an in depth look at BTC, first from an Eagle Eye perspective.

This Weekly chart shows Bitcoin trend for the past 8 years weaving in and out of these Fibonacci channels.
If you look close you can see the important of these Fib channels as Support and Resistance throughout BTC history.




As you can see as we zoom in to take a closer look, Bitcoin has been testing the .786 Fib channel for 9 weeks now.
Slowly making higher highs, while at the same time being rejected from the .786 Fib trend-line each time BTC created a new ATH (3x).
With the last rejection coming from 65K.




Taking a look at the 3 day chart, we can see that No Major trend-lines have been broken by yesterdays price action.
Both the longer term (blue) ascending channel that started in the 10k region,
And the shorter term (yellow) channel are still intact.




Now a bit on the bearish perspective.
Today's Weekly close will be very important, and will likely determine the direction that Bitcoin will follow for the next weeks/months
BTC needs to close above the 55K level at very least to regain its bullish momentum.
A close below 55k could lead to retest of lower support zones
Keep in mind that we have not had a retst of the 21 Weekly averages since we broke 10k.
During the 2015-2017 Bullrun Bitcoin retested and closed weekly candles above these moving averages about 7 times
This was the way we knew that we were still in a bullrun!


38k-43k has ALOT of support to offer Bitcoin in case of a deeper pullback in my opinion.
Looking at this chart we can see ALOT of confluent factors for SOLID support for Bitcoin in the 40k area.


21 Weekly EMA (43.5k, Orange)
21 Weekly MA (41.3K, Blue)
.618 Fibonacci Channel (Yellow diagonal)
Previous ATH (42K)
5 weeks of resistance between 38k-40k (Support Zone)


Weekly RSI is still in bullish @ 65




Weekly MACD is not looking the greatest and could possibly cross bearish in the next week depending on price action.
But Bitcoin pumping from these levels could change the structure of the MACD.
Histogram does show downward momentum, but is still positve



This could very well be a shakeout of weak hands on Weekend Volume.
Or it could be the beginning of a deeper retrace to the 40K levels.
Either way I DO NOT believe this bullrun is over by any means!
Stay tuned for more updates as price action develops.




I hope that you have enjoyed my analysis I will update later tonight after the Weekly close!
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Thank you Very Much for your Support!

-Cryptonacci