Bitcoin’s eyes are seeing a long ‘rekt’ of 8% BTC price loss following the $58K CME gap
Bitcoin (BTC) analysis now expects BTC's price action to target $58,000 next, with long positions “rekt.”
The weekly loss of Bitcoin is about 10%
Data from Cointelegraph Markets Pro and TradingView show continued sell-side pressure forcing BTC/USD to three-week lows.
As the disastrous weekend capped an equally miserable weekly candle, market participants are warning that Bitcoin bulls could be in for more pain next week.
“Bitcoin entered the CME gap, but technically, it can only be filled during TradFi trading hours,” Keith Allan, co-founder of Trade Wealth Material Indicators, wrote in a recent X post on August 4.
Allen noted the void between the closing and opening levels in CME Group's Bitcoin futures markets.
The price action of BTC will move up or down to “fill” these gaps after the weekend, and currently, $58,000 is turning into a near-term target.
“If Bitcoin trades at its current price, a new CME gap will open,” noted trader Daan CryptoTrades continued his article on the topic with an explanatory chart.
In the green box we open to trade approx. We still had a big gap from last month which was between $58K-$61K. Now we create a new gap between ~$60K-$63K. It's going to be a fun week. “
Meanwhile, Alan predicted that at the time of writing BTC/USD is set to release more than 8% of the weekly close that will not provide lasting relief.
“With that in mind, there's a low chance we'll see BTC price recover for the near term, but if we do, I expect it to be short-lived,” he concluded.
“Next week we are waiting to test the support and fill the gap. Bulls don't want to see a lower low.”
The accompanying chart highlights buy and sell signals for one of Material Indicators' proprietary trading tools.
BTC Price Volatility “Confirmed”
Adding his own thoughts to the CME gap debate, another prominent trader argued that CrypNuevo's “flow” to $58,000 would have a cathartic effect on market sentiment.
Related: Bitcoin Traders Warn of Tough Q3 as Nikkei Echoes ‘Black Monday' 1987
“Another thing is that this $72k to $60k range was very present and clear in the minds of all traders,” read part of the X thread that day.
“This means optimistic traders bought at $60,000-$61,000. About $58k will scare them enough to get rid of their position. This might just be the trick the market needs.
Data from monitoring source CoinGlass shows how long BTC positions have suffered in recent days.
Almost $200 million in long liquidity has occurred since August 1st, with BTC/USD dropping below $60,000, reducing peak buying liquidity.
“Continuous downtrend, but more orders are starting to appear,” Daan Crypto Trades responded with the BTC/USDT pair on the largest international exchange Binance, alongside the order book data.
“Going long, going short, buyers are coming in. Volatility is guaranteed here.”
According to Cointelegraph, the $56,000-$60,000 range will be a key support for bulls to hold.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
