Bitcoin: CME Gap Analysis 1D (May 15)

15 мая 2020 г.

X Force Global Analysis:


In this analysis, we explore Bitcoin's CME Future gaps to determine significant support and resistance zones.

Analysis

- A gap is an area of a chart where a security's price either rises or falls from the previous day’s close with no trading occurring in between
- Gaps are spaces on a chart that emerge when the price of Bitcoin significantly changes with little or no trading in-between.
- Gaps occur because of underlying fundamental or technical factors, and serve as support and resistance zones
- It's important to note that gaps have a tendency of getting filled, due to irrational exuberance, technical resistance, and price patterns
- In this chart, we can see gaps that have been filled, marked by green, and unfilled gaps marked by red
- We have a huge unfilled gap around the 11k mark. This gap is likely to get filled once we break out and close above significant resistance zones, and are provided with a confirmation for a bullish rally
- The other significant gap is the gap around 9.3k.
- While there has been a clear gap, it has technically been filled by the wick of a candle.
- However, at the same time, it may be too soon to rule out the probability of witnessing another bigger corrective wave, filling the gap with a candle body.


Market Sentiment:

Long short ratios remain at 66 to 34, with bullish sentiment dominating the market.


What We Believe

As mentioned previously, we believe that a break and close above 10K levels is essential for further bullish confirmation. Because we have not been given any bullish confirmation yet, whether the gap at 9.3k has been filled or not remains open for interpretation at the moment.

Trade Safe.