Bitcoin (BTC) Has Gaps To Fill Well Below $9k

Bitcoin (BTC) Has Gaps To Fill Well Below $9k

Bitcoin (BTC) declined below $10,000 on a weekend. This will have a lot of retail traders and crypto influencers talking about a gap to fill to the upside when the next week begins. That is true because as outlined on the daily chart for BTC/USD, we can see that there is a gap to be filled to the upside. It will therefore not be surprising to see Bitcoin (BTC) climb above $10k once again next week. However, there are three more important gaps well below $9k that no one seems to be talking about. These gaps have to be filled even under the bullish case. So, if you are someone that expects BTC/USD to fly to $20k or higher, you may still want to keep an eye on these gaps to be filled first.

The first gap is around $8.5k. This could easily be filled by the next aggressive move to the downside which would be expected when BTC/USD declines below the rising wedge. So far, it has not done that on Bitcoin CME Futures but it has done it on exchanges that trade 24/7 like the Bitstamp exchange. If we see the beginning of a downtrend next week, then we would certainly be looking at this gap being filled. However, this is not the only gap. There are two more gaps lower than that in the $7ks. One is around $7.7k while the other is around $7.4k. We have previously seen that BTC/USD has filled all gaps before the beginning of a major uptrend. So, even if BTC/USD is indeed going to $20k which I highly doubt, it might still have to decline to $7k to fill these gaps.

Bitcoin dominance (BTC.D) is at a crucial point. So far it has held a key support but if this break then we could be looking at the beginning of a new bullish cycle in the market. In light of all that is going on major financial markets, it seems very unlikely. Even the chart of Bitcoin (BTC) itself does not support that kind of a move at this stage. The ongoing cycle has to be longer than the previous one as we have seen throughout the trading history of Bitcoin (BTC).

As Bernie Sanders bags more victories and the Coronavirus outbreaks gets worse, we are going to see the S&P 500 (SPX) start reacting to these major developments. So far, they are not priced in. Wall Street is doing its best to keep the optimism high. Like the major stakeholders in the crypto market, Wall Street is the major stakeholder in the stock market. They want people to keep buying stocks. Certainly, they cannot do that for long and once a few big investors start getting out of the market everyone is going to be rushing for the exit because it is quite clear that this time around the Federal Reserve is not in a position to save the market. As for Bitcoin (BTC), every devastating decline in the S&P 500 (SPX) has been followed by a similar decline in the cryptocurrency market. So, if the stock market takes a hit, Bitcoin (BTC) is extremely unlikely to hold its ground.


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