Technical Analysis Underscores Critical Phase for Bitcoin’s Price Trajectory.
Daily Chart: Breakout and CME Gaps
Bitcoin’s daily chart exhibits a significant breakout, potentially leading to the filling of the $35,000 CME gap. CME gaps, representing unfilled price ranges in futures trading, often act as price magnets. However, this upward movement could be followed by a correction to $20,000, mirroring healthy corrections observed in the past. A more bearish scenario could see Bitcoin’s price drop to $17,000.
Weekly Chart: Bearish Signs and Liquidations
The weekly chart presents potential bearish signs, with liquidations impacting the market. These liquidations, triggered by margin calls, can amplify price movements. Despite the recent breakout, a reversal is predicted in the coming weeks, emphasizing the need for caution among traders.
Conclusion: Critical Phase and Cautious Approach
Bitcoin’s price is at a critical juncture, with potential corrections looming. The CME gaps are being closely monitored, and traders should exercise caution, preparing for potential market fluctuations.