Let me start by mentioning this is not a standard BTC chart. This is the CME (Chicago Mercantile Exchange) chart. You can think of this as a traditional stock market version of BTC. It’s closed on weekends like the standard stock market and is a way that many institutions invest in and trade BTC. The thing that’s important to know is that these “CME gaps”, places where the CME chart has gapped over the weekend and the candle wicks don’t touch, are very frequently re-visited.
I don’t trade solely on these price gaps as they can often take a long time before they get closed. But it’s always good to keep them in mind as thy can be important places for price action pivots. So that’s exactly what we are looking at here.
BTC has been on a bit of a run and while many people are getting bull-run ideas, it’s important to remain unbiased to price action. Immediately overhead we have a gap that will close at approximately $28,800. This one is very close to current price action. There is another gap one step higher than that at $35,300. It’s unlikely that price action just blasts straight through these, but these are major levels I am keeping in mind as BTC continues to climb higher.
To sum up my thoughts in another way: I am not predicting a reversal in price action, but I do think that if we see a reversal in the market it will happen at one of these price gaps.
Let me start by mentioning this is not a standard BTC chart. This is the CME (Chicago Mercantile Exchange) chart. You can think of this as a traditional stock market version of BTC. It’s closed on weekends like the standard stock market and is a way that many institutions invest in and trade BTC. The thing that’s important to know is that these “CME gaps”, places where the CME chart has gapped over the weekend and the candle wicks don’t touch, are very frequently re-visited.
I don’t trade solely on these price gaps as they can often take a long time before they get closed. But it’s always good to keep them in mind as thy can be important places for price action pivots. So that’s exactly what we are looking at here.
BTC has been on a bit of a run and while many people are getting bull-run ideas, it’s important to remain unbiased to price action. Immediately overhead we have a gap that will close at approximately $28,800. This one is very close to current price action. There is another gap one step higher than that at $35,300. It’s unlikely that price action just blasts straight through these, but these are major levels I am keeping in mind as BTC continues to climb higher.
To sum up my thoughts in another way: I am not predicting a reversal in price action, but I do think that if we see a reversal in the market it will happen at one of these price gaps.