BTC futures was able to break above the channel/bearflag last week but was rejected at the 50%FIB of the recent down move and sent back down into the channel. However, before everyone gets excited for a move higher, there is an unfilled gap in price at around $6420 and every time there has been a gap in price on Bitcoin futures they have been filled somewhat quickly. I highly doubt this time will be an exception so if you're looking to go long or looking for a short, this could be a good entry target or take profit as this zone will act as a magnet but we could see a further move lower back towards the bottom of the channel.
We haven't really made a new high on the RSI, basically flat while price continues to make new highs, which exhibits bear divergence at the moment.
If we do get the gap fill, pay attention to the volume as a high volume sell-off from the top of this channel could spell further downside and a break below, which from a bearflag could spell test of yearly lows. As always, wait for ideal entry points and wait for your targets and don't chase.
Hello, I've been using these gaps for trading BTC for a few weeks, it's a great tool and I I wonder if you know an indicator for these gaps, which would also be great for Forex actually,
CM_Trades
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@jordanovitch, there are scripts on tradingview that identify gaps and display them on the chart. Just enter gap on the indicator search bar and you should see a few!
jordanovitch
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@Crypto_Terminal_Chris, Yes, I tried a lot of them, but for unknown reasons, those I found all fail from even noticing the gap on the monday opening, not to mention the more subtle gaps
CM_Trades
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@jordanovitch, i see. I look at the chart and plot my own. Maybe if you search for something online!