BTC $950 CME Futures Gap| Correction Imminent| BTC Local Top
Hello Traders!
What goes up… Must come down!
Today’s update will be on Bitcoin in comparison with the CME futures Chart, a massive $950.00 Gap that with a high degree of probability, will get filled. Is this the local top for Bitcoin?, we have a handful of indicators that point towards that…
Points to consider,
- Trend highly overextended
- Local Support at .50 Fibonacci (.382 on the CME futures chart)
- Structural resistance being rested
- Stochastics in upper region
- RSI in overbought territory
- EMA’s yet to meet price
- Volume influx is very high
Bitcoins impulse move continues to be overextended in a parabolic manner, with indicators way overextended; we need a healthy correction at some point. Price was initially met with high selling pressure at local top, signalling a volume climax.
Local support is found at the .50 Fibonacci level, a retracement to the level will close the CME futures gap (.382 Fib Retracement), where price is likely to hold support at this area due to market structure, previous resistance turned into support.
Major structural resistance is currently being tested, it is in confluence with downs sloping resistance, the consecutive lower highs. This is a very critical area in the trend, if broken, will change the overall market structure for Bitcoin.
The stochastics are currently in the upper regions for both charts, this signals that there is a lot of stored momentum to the downside if price was to correct. We don’t really have a clear direction from the Stochastics as it can stay over extended for a long period of time. The RSI is quite interesting however, it is in highly overbought territory, last time we tested these areas, Bitcoin experienced a huge correction over 20%...
EMA’s however are yet to meet price, we need it to hold support at the .50 Fibonacci level if price where to retrace from local highs, the will validate support and in confluence close the open gap on the CME futures chart (.328 Fibonacci level).
The VPVR on the CME futures chart indicates that there is very little volume of transactions between structural resistance and the .382 Fibonacci level (close of gap). This signals that the VPVR will pose very little resistance if price was to start a healthy pull back.
The volume is way above average, signalling buying climax that ran into strong selling pressure, hence the massive wick as bullish pressure got exhausted… In other words, sellers are very strong in upper regions, putting more emphasis on a correction.
Overall, IMO, BTC is likely to be topping out, we may see a final impulse move up, but that will just make the trend even more unsustainable. A correction back to the $8,800 mark (.50 and .382 Fibonacci levels), is highly probable, as this will fill the CME futures gap. This will also be very healthy for the price and will cool of the overextended indicators.
What are your thoughts on BTC and the futures gap?
Please leave a like and comment,
And remember,
“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.” – Jesse Livermore
What goes up… Must come down!
Today’s update will be on Bitcoin in comparison with the CME futures Chart, a massive $950.00 Gap that with a high degree of probability, will get filled. Is this the local top for Bitcoin?, we have a handful of indicators that point towards that…
Points to consider,
- Trend highly overextended
- Local Support at .50 Fibonacci (.382 on the CME futures chart)
- Structural resistance being rested
- Stochastics in upper region
- RSI in overbought territory
- EMA’s yet to meet price
- Volume influx is very high
Bitcoins impulse move continues to be overextended in a parabolic manner, with indicators way overextended; we need a healthy correction at some point. Price was initially met with high selling pressure at local top, signalling a volume climax.
Local support is found at the .50 Fibonacci level, a retracement to the level will close the CME futures gap (.382 Fib Retracement), where price is likely to hold support at this area due to market structure, previous resistance turned into support.
Major structural resistance is currently being tested, it is in confluence with downs sloping resistance, the consecutive lower highs. This is a very critical area in the trend, if broken, will change the overall market structure for Bitcoin.
The stochastics are currently in the upper regions for both charts, this signals that there is a lot of stored momentum to the downside if price was to correct. We don’t really have a clear direction from the Stochastics as it can stay over extended for a long period of time. The RSI is quite interesting however, it is in highly overbought territory, last time we tested these areas, Bitcoin experienced a huge correction over 20%...
EMA’s however are yet to meet price, we need it to hold support at the .50 Fibonacci level if price where to retrace from local highs, the will validate support and in confluence close the open gap on the CME futures chart (.328 Fibonacci level).
The VPVR on the CME futures chart indicates that there is very little volume of transactions between structural resistance and the .382 Fibonacci level (close of gap). This signals that the VPVR will pose very little resistance if price was to start a healthy pull back.
The volume is way above average, signalling buying climax that ran into strong selling pressure, hence the massive wick as bullish pressure got exhausted… In other words, sellers are very strong in upper regions, putting more emphasis on a correction.
Overall, IMO, BTC is likely to be topping out, we may see a final impulse move up, but that will just make the trend even more unsustainable. A correction back to the $8,800 mark (.50 and .382 Fibonacci levels), is highly probable, as this will fill the CME futures gap. This will also be very healthy for the price and will cool of the overextended indicators.
What are your thoughts on BTC and the futures gap?
Please leave a like and comment,
And remember,
“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.” – Jesse Livermore
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