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Bitcoin: Possible retrace to fill the CME Gap? (Aug. 19)

Short
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
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BTC is currently facing two scenarios and has been hit with a wall of resistance at 12K levels. A breakout occurred in the previous days, but that has printed a new rising wedge which is now considered to be semi bearish and may bring the bears back in control to drive price back down to the CME gap we have mentioned previously. Please have a look at why CME gaps are truly important in BTC price action in our previous analysis:


Bullish case:

1. BTC would break out of this rising wedge , and recover from yesterday's drop - we must stay above 12K.
2. A major trend reversal back into overbought territories is needed for breaking last years (2019) high.

Bearish case:

1. Currently bears seem to be trying to take semi-control of the situation with this rising wedge that we are seeing in our chart. This can mean a breakdown would confirm a small downtrend in the short term and 12K stays as minor resistance for the time being.
2. A break below 11K is setting up a higher probability for the CME gap at 9.7K to be filled faster than we anticipated.

Here's a previous analysis why we think Bitcoin is on a bullrun on the LONGER timeframe:


Either way, Bitcoin seems to be bullish in our long term perspective, and we believe that whatever position you take, our analysis is showing that you can profit both from a shorting and longing perspective.

Trade Safe.

X Force.

Comments

Great analysis and technical set up!
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Thanks for sharing
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XForceGlobal JulieAdams
@JulieAdams, No problem :)
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