Bitcoin’s $1000 Breakaway CME Gap Demands Attention From Analysts
BeInCrypto | Oct 28, 2019 06:39AM ET
CME Group (NASDAQ:CME) is a global market company that owns numerous exchanges in New York and Chicago. In December 2017, it launched the futures market for Bitcoin (BTC). After its initial success, the group announced that it will launch options trading for Bitcoin in catalyst for the rapid increase of October 24.
It is possible that the Bitcoin price is likely to decrease and fill the gap before resuming its upward movement. Trader @TheCryptomist outlined this gap in the tweet below.
Let’s look at it closely, analyze the type of gap present, and hypothesize on what will it mean for future Bitcoin price movements.
Breakaway Gap
A breakaway gap occurs when the price breaks out from a previous trading range with significant volume.
The current Bitcoin price gap has all the characteristics of a breakaway gap. It had been trading inside of a defined range (a descending wedge) since June 24.
The gap occurred with a very significant level of volume and took the Bitcoin price above the descending wedge. This makes it a breakaway gap.
Future Bitcoin Price Movement
As stated previously, when a gap is left unfilled, a very common movement is to return to those levels in order to fill the gap. In the case of the Bitcoin price, that movement would also coincide with a retest of the previous resistance line — a customary movement in breakouts.
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Therefore, we would not be surprised if the Bitcoin price decreased to around $8700 — validating the resistance line before continuing its upward movement.
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