Price made a 5-wave structure hitting a recent bottom at 3515, and seems to be bouncing higher in a 3-wave structure.
We are seeing a potential relief rally towards 4684 area before another potential move lower.
Is it a short term buy opportunity?
*Disclaimer - This analysis alone DOES NOT warrant a buy or sell trade immediately. Before you enter any trade in...
Breakaway gaps occur at the end of a price pattern and signal the beginning of a new trend.
Read more: Playing The Gap: Profiting from Stock Disruptions | Investopedia www.investopedia.com
If tomorrow we see the bitcoin price increase and hit the green box, this could be confirmation of a bullish fakey pattern with a target of 6910 which would be very nice for the bulls and any HODLers! If the price dips lower than today's low though that would be an indication that this pattern is not valid and we need to keep looking.
We can see BTC filled the previous gap formed when we broke way lower on the future chart
It took a few days but we did close the gap but there is still a smaller one left a little higher
We are within reach to close that gap BUT a move lower could be followed
How strong of a move lower? Time will tell but the reaction we get when we hit this next zone...
In traditional markets gaps usually get filled. Bitcoin is a 24/7/365 market, but CME trading is not following the same hours. So far most gaps have closed but there are two bullish gaps left open. If the price doesn't go near 6190 before the CME markets open again, then there will be a pretty decent bearish gap that will have to get filled eventually
