Crypto Analyst: Bitcoin Will Drop to $8,400 and Fill Futures Gap
A popular crypto analyst says it’s only a matter of time before Bitcoin fills its CME futures gaps.
Historically, Bitcoin fills the gaps in price that are created when the CME futures market closes and reopens. According to The Cryptomist, three open gaps now remain, and if past is prologue, BTC will both rise to $11,800 and fall to $8,400.
1089 gap almost filled
2 more gaps need to be filled
– 11.8k
– 8.4kDo not be mistaken, both will be filled. pic.twitter.com/ZtqtZ4WR9C
— The Cryptomist (@TheCryptomist) August 13, 2019
Fellow analyst Josh Rager is mapping out Bitcoin’s weekly path and says BTC’s break below support at $10,185 signals it could soon hit $9,500.
“Price has retraced to the weekly support (breaking at the moment).
If this area breaks/closes below we can see a drop to mid-high $9ks for a test at the next weekly support and the daily 100MA.”
Meanwhile, traders are wondering if Bitcoin’s status as a safe-haven asset will stand the test of time. BTC’s big drop on Wednesday happened as the Dow dumped 800 points. But at the same time, gold rose 1%.
The CIO of Ikigai Asset Management, Travis Kling, says Bitcoin may be earning its chops as a hedge against global financial uncertainty, but has to go through some growing pains.
“Lots of talk about BTC as a safe haven lately. Hasn’t acted like that last few days. Why? Could be crypto specific market structure issues. We see those right now. Could also be [that] BTC is strong enough to act as a safe haven to an extent and for certain types of stress, but not all.
It’s like, maybe BTC is strong enough to swim in the pool right now but not in the ocean. Maybe BTC can act as a safe haven when the VIX goes from 12-17 but acts risk [sic] on above 17. Maybe BTC can rally with gold when it’s about tariffs but not when its about global growth slowdown.”
Bitcoin is currently down 8.60% at $9,699 according to CoinMarketCap at time of publishing.
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