Bitcoin just hit $11,700 and that fills a year long gap on the CME BTC Futures chart
There is still one major hurdle that bitcoin needs to clear in order for the bull market to really begin.
And that's the last remaining gap on the CME BTC Futures chart.
The gap is from about $11,700 to about $11,800 and it happened back in August of 2019.
Which can be seen here:
As you can see, bitcoin is in the process of filling that gap.
Is this good or bad?
As you may or may not know, the CME BTC Futures Gaps have a very high propensity to fill. I remember reading a stat that something like over 90% of all CME gaps have been filled at this point.
It's good news that bitcoin has enough momentum and strength to finally reclaim this level.
However, it's not great news for a continuation of the current move that bitcoin had to be so extended in reaching it.
Often when the price moves up so quickly like BTC has, and fills a gap, it often pulls back shortly afterwards.
Adding to that negative view is the fact that there is also a gap left unfilled on the charts from this most recent move up down around $9,900...
And as I mentioned above, these gaps do love to fill.
The only question is whether that gap fills in the very near future or takes over a year or more to fill, similar to this most recent one.
Working against the idea of that gap being filled is the tremendous support zone that has been built just above it:
A pullback will likely be short lived...
Even if we do get a pullback after this CME gap fill at $11,700 it likely will be short lived.
BTC has a ton of macro tailwinds on its side currently as well as historical patterns and trends that are all pointing towards new highs within the next 12 months.
Significantly higher highs actually.
So, even if we do get a dip, or even a sizable correction that just so happens to fill that $9,900 gap, we are likely going significantly higher still in the medium term.
Which means if you are going to try and trade these gaps, you better be quick and nimble.
Personally, it was tempting to take some off the table here at $11,700 but I decided I am going to let it all ride and see where we go as there does seem to be all sorts of momentum behind this recent move.
Time will tell if that was the right move or not.
Stay informed my friends.
Posted Using LeoFinance