Bitcoin's "floating flag" is well established, breaking the lower side of the "triangle" on the downside today, triggering a long unwinding, with $600 million of holdings disappearing in one day at OKEx and Huobi.
Here's a reference. The CME exchange is closed from Saturday to Sunday, so when it opens on Monday, the movement of the CME's bitcoin contracts will have a big impact on the currency market.
So far, the CME's bitcoin contract has left two jumps open at $54,400 and $59,400. According to the logic of gap covering, CME's bitcoin contract will cover the following two gaps.
Now there's a problem. If the price of bitcoin is above $54,400 before the market opens on Monday, it means that the impact of long positions being unwound when the CME opens will directly drive the price down.
In other words, the higher the rally now, the more bearish it will be Monday morning.
So let's hope the bouncers here are cautious enough. Stop being cannon fodder for the dealer.
Why is the CME gap using the lower of the two? $54,400 and not $59,400? Thank you
UnknownUnicorn10952252
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THANK YOU! Someone knows how the markets. Everyone is looking for a quick bump now buy the dip but it could end up hurting us badly on Monday. Let us see should be a wild week up ahead