Bitcoin may sink to just above $8,000 in the short term in order to keep in line with its historical behavior, new crypto analysis suggests
Bitcoin may sink to just above $8,000 in the short term in order to keep in line with its historical behavior, new crypto analysis suggests.
BTC TO DESCEND BELOW $9K?
Currently circulating on social media are charts of CME Group’s Bitcoin futures performance which traditionally impacts on the Bitcoin price. On these charts it shows a probability of BTC/USD soon hitting $8,400.
The theory emerges on the back of fresh volatility in Bitcoin markets, with the largest cryptocurrency falling away from local highs above $12,000 to lose $11,000 support on August 14.
At press time, the pair was trading beneath $10,500, with traders keenly eyeing how support reacts to the threat of Bitcoin returning to four digits.
According to the futures data, however, that likelihood is considerable. Identifying two gaps in the charts since June, Twitter account known as The Cryptomist bet on BTC/USD trading at both $8400 and $11,800 in future.
“Do not be mistaken, both will be filled,” the analyst summarized.
The futures gaps mentioned refer to vacuums in markets where trading opened higher than the previous close’s high or lower than the previous low.
In the past, Bitcoin has had a habit of ‘filling in’ gaps left in futures performance, giving rise to Cryptomist’s confidence that the same pattern will occur now.