BTCUSD-The dump may be over faster than you think!!!
The green rectangles on the chart are gaps in the price over the weekend.
All the immediate gaps that are relatively close below the price have been filled such as the gap from about $54500-$55200.
The only gaps that remain are above the price all the way up back to $60k and you could argue the gap goes up to about $61600.
There is also a bullish divergence on the 1h chart and if you look at the bitcoin spot chart it can also be seen on the 4h chart.
What to expect:
With the CME gap being above the price and the bullish divergence both in the futures 1h and the spot price 4h time frame you could expect at least a small bullish trend.
Maybe you could say there is a bit of a double bottom too.
This bullish trend could go up and fill the gap bring the price to $61-$61.5k
Bearish scenario:
Gaps don't need to be fill and if they do, they don't always fill right away so there could be a move down still.
Considering the breakout from the wedge/triangle depending on how you draw it a low target is around $43k.
Overall:
I am leaning to the bullish side because I believe there is a good chance this drop is manipulation.
The hash rate dropped because of a power outage in china and over 9000 bitcoins were moved to the binance exchange if I remember correctly which is Chinese to be probably sold.
Soon after the sharp drop 22700 I’m not sure if that number is exact was pull out of the exchange.
This could mean someone in china knew about the power outage and knew that bots would sell the hash rate drop and to get more BTC they sold at market and maybe shorted too to push the price down further.
Then proceeded to pick up way more BTC then they started with.
Comment what you think and follow if you liked the idea, it would help me.
All the immediate gaps that are relatively close below the price have been filled such as the gap from about $54500-$55200.
The only gaps that remain are above the price all the way up back to $60k and you could argue the gap goes up to about $61600.
There is also a bullish divergence on the 1h chart and if you look at the bitcoin spot chart it can also be seen on the 4h chart.
What to expect:
With the CME gap being above the price and the bullish divergence both in the futures 1h and the spot price 4h time frame you could expect at least a small bullish trend.
Maybe you could say there is a bit of a double bottom too.
This bullish trend could go up and fill the gap bring the price to $61-$61.5k
Bearish scenario:
Gaps don't need to be fill and if they do, they don't always fill right away so there could be a move down still.
Considering the breakout from the wedge/triangle depending on how you draw it a low target is around $43k.
Overall:
I am leaning to the bullish side because I believe there is a good chance this drop is manipulation.
The hash rate dropped because of a power outage in china and over 9000 bitcoins were moved to the binance exchange if I remember correctly which is Chinese to be probably sold.
Soon after the sharp drop 22700 I’m not sure if that number is exact was pull out of the exchange.
This could mean someone in china knew about the power outage and knew that bots would sell the hash rate drop and to get more BTC they sold at market and maybe shorted too to push the price down further.
Then proceeded to pick up way more BTC then they started with.
Comment what you think and follow if you liked the idea, it would help me.
3rd times the charm???