With CME Futures Gap Filled at $7,200, What’s Next For Bitcoin?
This Monday, a Bitcoin price gap opened in the CME futures between $7,200 and $7,450 due to weekend volatility in the cryptocurrency market. The thing is, on Monday, the leading cryptocurrency was trading at $7,600, even as high as $7,700, leading some to suggest that the asset was going to leave the CME futures gap behind, maybe forever.
Though on Christmas Eve, the gap was filled as BTC tanked, returning to levels it was trading at prior to the weekend jump.
CME gap filled. pic.twitter.com/y9pzWjgi2b
— Hsaka (@HsakaTrades) December 24, 2019
With the gap now filled, some are wondering what comes next for Bitcoin and its ilk?
Bitcoin Analysts Bullish
While some say the return to the low-$7,000s is a bearish retracement implying an impending return under $7,000, there is a confluence of factors suggesting that the ball remains in the court of the Bitcoin bulls.
“Dave the Wave,” a prominent chartist that called the recent drop to the $6,000s when Bitcoin was trading above $10,000, recently noted that he believes the one-week Moving Average Convergence Divergence (MACD) — an indicator tracking trends of assets — is likely going to see a bullish crossover early next year. The popular trader wrote:
“Weekly MACD shaping up to re-cross bullishly soon to confirm the continuation of the next cycle.”
Bullish MACD readings on Bitcoin’s one-week chart marked the start of previous bull runs, including the miniaturized one seen from March of this year to July.
That’s not to mention that as reported by NewsBTC previously, Scott “The Wolf of All Streets” Melker recently observed that the weekly Bitcoin chart printed an extremely bullish signal: a “massive bullish divergence in oversold territory on Stochastic Relative Strength Index.”
Per the trader, this is the fourth time this signal has been seen since the $20,000 top seen in late-2017. The first preceded a bear market rally from $6,400 to $9,900 in mid-2018, the second preceded the 330% jump in the Bitcoin price seen from December 2018 to June 2019, and the third predicted the move from $7,400 and $10,400 that took place just weeks ago.
(1) The weekly XBT chart confirmed the massive bullish divergence in oversold territory on Stochastic RSI. This is the fourth time that this has happened since the Bitcoin top. The first moved price from $6,400 to $9,900… pic.twitter.com/VpHArXdGzr
— The Wolf Of All Streets (@scottmelker) December 23, 2019
Fundamental developments seemingly favor bulls as well. As put best by Andy Bromberg of Coinlist in a recent Bloomberg interview:
“We are seeing a level of building that has happened in 2019 [which makes it feel like] we’re in the moment of everyone is putting on their jumpsuits, ready to take off.”
This has been echoed by Changpeng “CZ” Zhao of Binance, who recently remarked in an interview that he expects for Bitcoin and crypto’s next five to ten years to be extremely positive, marked by higher prices and, as such, more adoption.