- After the Bitcoin price rose over the weekend, Bitcoin fell by USD 400 in the early hours of February 24.
- With the price movement another Bitcoin CME Futures Gap was closed. However, the bullish trend is still intact.
For quite some time now, the theory has been floating around the crypto space that it is most lucrative to buy Bitcoin on Friday and sell it on Monday. This theory was confirmed again the past weekend. After the Bitcoin price rose from around $9,700 to temporarily over $10,000 over the course of the weekend, another major price crash occurred on Monday (01:00 UTC).
The BTC price fell briefly to 9,586 USD. At the time of writing, BTC is trading at $9,768, although the price has stabilized in this range.
While the market capitalization of the crypto market rose by $10 billion over the weekend to over $290 billion, just over half of that amount was reversed by the sudden downward movement of the entire crypto market due to early trading in the Asian market.
Bitcoin CME Gap is filled again
The CME Bitcoin Futures Gap is blamed by many experts for the price drop. This “gap” is caused by the fact that Bitcoin Futures are traded on the high-volume Chicago Mercantile Exchange (CME) only during the usual trading hours from Monday to Friday, unlike Bitcoin. The price rises at the weekend create a supposed gap.
In technical analysis, the occurrence of the “gap” is considered a meaningful indicator of price movements. Nevertheless, future gaps are controversial in the community, as this phenomenon does not always lead to a guaranteed price movement. According to Datamish Charts, over 26 million dollars in long positions were liquidated on BitMEX as a result.
— nik (@nikdagg) February 24, 2020
However, the decline was stopped by the support level at $9,650. Currently, the BTC price trades above $9,700, just slightly higher than its 23.6% Fib-Retracement level of the last local high of $10,020. Still bullish is the fact that a trend line has formed with support near the $9,750 level on the hourly chart of the Bitcoin/USD pair.
If the Bitcoin price can hold the level of around $9,500, a further rally could follow. A first hurdle to the upside is near the USD 9,800 mark, the 50% Fib-Retracement level of the recent decline from the 10,020 high.
Josh Rager, a popular analyst on Twitter, confirmed this and noted that Bitcoin has dropped to a price near the weekly and daily support level of $9,580. Holding above the $9,550 mark is a good sign in the long term, Rager said. A break below the $9,300 mark, however, could reverse the still ongoing bullish trend. However, the upward trend is still intact.
Price dropped & bounced near the weekly/daily support around $9580
Holding above the $9550s is a good sign on higher time frames and breaking below the $9300s will still flip bear bias
Lower time frames in down channel but weekly chart still not confirmed trend reversal pic.twitter.com/vCZzAajReD
— Josh Rager ? (@Josh_Rager) February 24, 2020
Besides Bitcoin, the Altcoins have also suffered from the recent fall in prices. At the time of writing, however, the losses are already relatively small due to the current recovery: Ethereum (-1.4%), XRP (-2.4%), Litecoin (-3.3%), Cardano (-2.0%) and Chainlink (-4.6%).