Dubai-based crypto analyst The Moon tells his 76,000 subscribers on YouTube that Bitcoin has just created a big gap in the Chicago Mercantile Exchange (CME) Bitcoin futures contracts.
After Bitcoin’s plunge from $9,773 to $8,463 on September 24, BTC has been trading in a $775-range for the past 30 days, reaching a low of $7,845 on September 30 and a high of $8,620 on October 9, according to data compiled by CoinMarketCap. With sideways price action in play, crypto traders are looking for a break-out in either direction.
Unfilled gaps can be an indicator of likely price targets.
According to The Moon,
“All gaps in the CME futures chart, all of them have been filled. And until recently the $8.5k gap had not been filled, but because of the fact that we broke down, now it also got filled. So there’s only one gap left and that’s the one up at $11.8k. But like I said, we just created another — a second gap which is below the price. And it is the gaps below us that we need to be aware of because, of course, that could mean that Bitcoin needs to come down and fill the gap.
I think the best-case scenario would be if Bitcoin could just come down and fill the gap right now and maybe we can just continue to go up later, because if Bitcoin does indeed go to the upside, this means that statistically and historically, no matter how much we go up, we need to come down and fill the gap. It’s not guaranteed and it doesn’t have to, it just means that statistically and historically the chart tells us that we should come down and fill the gap.”
Looking at previous price action to try to predict Bitcoin’s next move, the analyst says BTC may break to the upside, reaching $8,600 in the near term.
“I’ve been talking a lot about the coming breakout and the fact that we’ve been in this falling wedge or descending channel…It will be a bullish pattern and that means that the chance that this is breaking up will be higher rather than breaking down.”
Bitcoin is currently trading at $8,015, down 2.72%.